The main legislation covering insolvency in Switzerland is the Act on Debt Enforcement and Bankruptcy which was last amended in 2014. The Insolvency Law applies at federal level and only covers debts payable in Swiss francs, while debts in other currencies are covered by the local laws and procedures. Under the new law, the restructuring and insolvency of a Swiss company can be done through two types of proceedings:
The major change brought by the 2014 law provides for special insolvency regulations for financial companies, insurance firms and collective investment schemes. Our Swiss lawyers can provide you with more information about the content of the new Insolvency Law.
While bankruptcy leads to the dissolution of the company, composition provides for the protection of Swiss indebted companies against creditors by concluding a so-called debt-restructuring agreement. This agreement can be reached with the approval of a Swiss court of justice or outside the court. Restructuring, under its new form, is currently the most employed process of corporate insolvency.
The Swiss Civil Code provides for an additional restructuring method called the corporate law moratorium which helps debtors to appeal to an out-of-court procedure. This type of restructuring implies:
With a great experience in helping companies facing financial difficulties, our attorneys in Switzerland can provide the following services related to corporate insolvency and restructuring matters:
For complete information about the legal services provided by our law firm in Switzerland and assistance in restructuring and insolvency, do not hesitate to contact us.
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