A short guide to leveraging Pre-Packs in Switzerland

What situations call for a Pre-Pack?

Imagine the following scenario: a debtor, in our case a company, is facing severe financial distress. The company, however, still has certain business units that are profitable. In this situation, it may be sensible for the company to sell only these profitable business units. This proactive approach, if implemented quickly, could preserve business value and jobs while minimising disruption to operations and employees.

The questions are: can a Swiss pre-pack achieve this and if so, how?

Filed under:
Switzerland, Company & Commercial, Insolvency & Restructuring, CMS Switzerland
Authors:
Dr Marjolaine Jakob, ArbP
Location:
Switzerland
Firm:
CMS Switzerland
Distressed M&A: Swiss companies can use 'composition proceedings' to stay in operation during crisis and rescue profitable business parts

The COVID-19 crisis is causing financial difficulties for numerous companies. Often, bankruptcy seems to be the only escape. Based on the characteristics of US Chapter 11 proceedings, Swiss restructuring law was revised in 2014 so that judicial composition proceedings could be made more effective.

Filed under:
Switzerland, Company & Commercial, Corporate Finance/M&A, Insolvency & Restructuring, Litigation, Tax, CMS Switzerland, Value added tax, Coronavirus
Authors:
Dr Daniel Jenny , Dr Marjolaine Jakob, ArbP
Location:
Switzerland
Firm:
CMS Switzerland