Yves Klein and Antonia Mottironi, Monfrini Bitton Klein – mbk.law
Proposed Swiss International Insolvency Law Reforms
In October 2015, the Swiss Federal Department of Justice and Police (Eidgenössisches Justiz- und Polizeidepartement) published a preliminary draft of reforms to title 11 of the Swiss Private International Law Act (“SPILA”), which governs insolvency proceedings and compensation proceedings (Articles 166–175 rev-SPILA), together with an explanatory report. The consultation procedure for the proposed reforms culminated on February 5, 2016.
Key Takeaways:
In view of the extraordinary situation with regard to the corona pandemic, the Federal Council has ordered a temporary stay of debt enforcement. This stay of enforcement is valid from 19 March 2020 until 4 April 2020, and will be immediately followed by the statutory enforcement holidays, which last from 5 April until 19 April 2020. Below, we will answer some practical questions on debt enforcement and bankruptcy law in times of the corona crisis.
As a result of the coronavirus disease (COVID-19) pandemic (SARS-CoV-2), many companies will find themselves in financial difficulties. The Swiss government has already taken various measures to ease the burden on companies, including a financial assistance program of up to CHF 40 billion, and is considering further measures.
On 8 April 2020, the Federal Council affirmed its willingness to offer support for companies in financial difficulties because of the coronavirus crisis. At the same time, the Federal Council decided not to extend the legal standstill in civil and administrative court proceedings and in debt enforcement actions. The legal standstill will end as planned on 19 April 2020 at midnight.
En raison de la situation exceptionnelle liée à la pandémie du coronavirus, le Conseil fédéral a ordonné une suspension temporaire des poursuites. Cette suspension des poursuites aura effet du 19 mars 2020 au 4 avril 2020 et sera immédiatement suivie par les féries de poursuite qui durent du 5 avril au 19 avril 2020. Nous répondrons ci-dessous à quelques questions pratiques sur le droit des poursuites et faillites en temps de crise du coronavirus.
1. Que signifie « suspension des poursuites » ?
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.
April 2020
138Newsletter No.
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As announced on 9 April 2020, the Swiss Government today adopted measures to prevent a wave of bankruptcies as a result of the COVID-19 pandemic. At the heart of the measures is the suspension of the duty to notify the court in the event of over-indebtedness and a new moratorium designed for SMEs (COVID-19 Moratorium).
Newsletter No. 138 April 2020