On April 16, 2020, the Swiss Federal Council enacted the COVID-19 Insolvency Ordinance. One of its main goals is to relieve pressure on executive bodies of Swiss entities to request the opening of insolvency proceedings. Relief is targeted at overindebtedness situations caused by negative impacts of the COVID-19 pandemic on liquidity, earnings and going-concern prospects. Further, the Swiss Federal Council put in place a special COVID-19 moratorium.
On March 8, 2019, the Swiss Federal Council instructed the Federal Department of Finance to initiate the consultation process on proposed amendments to the Banking Act.
The proposed amendments aim at increasing the effectiveness, and legal basis, of certain bank resolution measures and related topics.
Interested parties can comment on the draft proposal until June 14, 2019.
Restructuring procedure for banks
On 16 March 2018, the Swiss Parliament adopted the revision of the international insolvency provisions of the Swiss Private International Law Act ("PILA"). Such revision particularly aims at simplifying the recognition of foreign insolvency proceedings in Switzerland which shall lead to a reduction of costs and improved efficiency. The revised PILA is now subject to an optional referendum.
The standard debt enforcement process
The Swiss Federal Assembly has passed the revised Swiss restructuring law in the closing vote of 21 June 2013. The referendum deadline has expired uncalled on 10 October 2013. The primary aim of the partial revision of the Swiss Debt Enforcement and Bankruptcy Act is to facilitate restructurings.
Introduction
Facts
Decision
Comment
Introduction
Under Article 271(1)(6) of the Debt Enforcement and Bankruptcy Law, a creditor may apply for an order to freeze a debtor's assets on the basis of a final enforceable title.