Financier Worldwide: Bankruptcy & Restructuring 2020
In the 2020 edition of the InDepth Feature: Bankruptcy & Restructuring 2020, Daniel Hayek and Mark Meili discuss the current economic situation in Switzerland in times of COVID-19 and its impact on corporate bankruptcies and insolvencies. Further, the authors provide an overview over recent legislative developments as well as the risks for managing directors and board members of companies in financial difficulties.
IBA Annual Conference report Seoul 2019 “Litigation crisis management”
Urs Feller provides a brief Conference report on the Litigation crisis management session which was held at the IBA Annual Conference 2019 in Seoul.
PD Launch Pad Newsletter May 2020: Liquidity Support for Start-ups Hit by COVID-19
With its COVID-19 Joint and Several Loan Guarantee Ordinance dated 25 March 2020 (“COVID-19 Guarantee Ordinance”), the Swiss Federal Council established a liquidity support scheme for small and mid-sized entities. Unfortunately, start-ups were not eligible for guaranteed credits under the COVID-19 Guarantee Ordinance. Following a first announcement on 22 April 2020, the Swiss Federal Council introduced a new liquidity support scheme for innovative Swiss start-ups on 4 May 2020 (“Start-up Support”). The guaranteed credits will become available as of 7 May 2020. Although highly appreciated, some start-ups might not benefit from the new support scheme.
Consequences of coronavirus on Swiss civil proceedings
On the basis of its constitutional authority to legislate by issuing direct orders to maintain public order, the Swiss Federal Council on April 16, 2020 enacted a COVID-19 regulation affecting prevailing judiciary and procedural rules. The regulation sets out the possibilities and requirements for Swiss civil courts to make use of audio and video conferencing instead of the ordinary conduct of proceedings in person as ordinarily prescribed by the Swiss Code of Civil Procedure. These provisions came into effect on April 20, 2020 and are meant to stay in force until September 30, 2020.
New measures in case of imminent or identified over-indebtedness of companies
Last month we showed how companies can restructure and avoid bankruptcy if they run into financial difficulties due to the corona crisis. In the meantime, the Federal Council has enacted new measures to protect companies in the event of imminent or identified over-indebtedness, which are explained here by Daniel Hayek and Mark Meili.