Switzerland’s new (or updated…) international insolvency law by Prof. Rodrigo Rodriguez and Marjolaine Jakob

Switzerland’s international insolvency law – the relevant provisions being contained in Art. 166-175 of the Swiss International Private Law Act (‘SPILA’) of 1989 – is governed by the principle of passive territoriality – or must we say “was”?

Lacking formal recognition by the competent Swiss court, foreign insolvency proceedings have no effects on Swiss territory. Foreign insolvency administrators may neither collect assets located in Switzerland nor take any legal actions to this aim on Swiss territory prior to such recognition (according to some views they may even risk criminal sanctions for such actions).