The standard debt enforcement process
Continuing with our focus on the issues surrounding insolvency and restructuring, Lawyer Monthly speaks to Daniel Hayek, a member of the management committee of Prager Dreifuss Ltd. Prager Dreifuss is an integrated law firm in Switzerland with a strong international focus, some 40 lawyers, and offices in Zurich, Berne and Brussels.
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.
This article tries to provide a brief overview of the problems which directors of a financially impaired company are facing under Swiss law.
The insolvency of Petroplus has increased the few debt moratorium cases by one and reminded us of its importance. Despite a comprehensive revision of the Swiss Debt Collection and Bankruptcy Act in 1997 there has been little change to the fundamental idea of bankruptcy law that both available options, namely bankruptcy and debt moratorium, lead mostly to the same result and that is: liquidation.
Despite a comprehensive revision of the Swiss Debt Collection and Bankruptcy Act ('DCBA') in 1997 there has been little change to the fundamental idea of bankruptcy law that both available options, namely bankruptcy1 and debt moratorium and composition agreement2 (together 'involuntary liquidation proceedings'), lead mostly to the same result and that is: liquidation.
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.
The Zurich High Court,(1) as court of second instance, recently dismissed a liability claim, to the amount of €150 million, initiated by the liquidator of Swissair against former members of Swissair's board of directors.