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UBS and Credit Suisse Group confirm that they have fulfilled all commitments to Swiss
UBS and Credit Suisse Group remain significant investors in Swiss. The two firms wish to make clear that they have never cancelled credit lines for Swiss and that they have fully honoured all agreements.
In October 2001, in connection with the agreement to create a new Swiss airline, UBS and Credit Suisse Group made available a CHF 500 million working capital facility. In the corresponding contract, the parties agreed that this credit limit would be valid until 31 October 2002. The first tranche of CHF 100 million was made available in the fourth quarter of 2001 and twice extended by the banks -- latterly until 31 March 2003. The second and third tranches of CHF 100 and CHF 300 million were cancelled early, and irrevocably, by Swiss itself in January and May 2002. Swiss confirmed this at the time in writing.
The banks remain significant investors
As financial investors, UBS and Credit Suisse Group have contributed significantly to the financing of Swiss, and with their above average participation have been prepared to take considerable financial risks.
With an equity participation of over 20% in Swiss, the banks are important financial investors. At the end of 2002, they agreed to extend the period for which their Swiss shares are blocked from sale beyond the agreed deadline of 31 December 2002, to August 2004. This extension applies to their entire shareholding, both from the capital increase as well as from the original purchase of Crossair. The original deadline had only applied to the capital increase. The banks went further in this respect than their contracted obligations to Swiss and its other investors.
Clear credit policy
As lenders, both banks follow clear credit policies, under which every credit request is judged by their internal risk and reward criteria. This "level playing field" and strong credit risk management is a clear expectation of clients, investors and employees. External pressure should not be allowed to affect these principles.
Zurich / Basel, 29 April 2003