SWITZERLAND: UPDATE ON SWISS GOVERNMENT MEASURES FOR DEBTORS AND CREDITORS IN CASE OF FINANCIAL DISTRESS RESULTING FROM COVID-1917 April 2020 By Sandrine Giroud, Benoît A. Mauron, Louise Aellen
The recent outbreak of COVID-19 and the public health measures taken by the Swiss government are causing many businesses to face extraordinary challenges, potentially leading to financial distress. Difficulties may arise for a company either because it has trouble, as a creditor, collecting receivables from distressed debtors and/or because it struggles, as a debtor, to discharge its own debts while operating on limited cash flow.
The present contribution exposes the duties of distressed companies under normal circumstances before outlining the extraordinary measures ordered by the Swiss government to mitigate the harmful effects of the current COVID-19 financial crisis. It then describes options available to companies facing difficulties and possible actions creditors may consider to safeguard their rights.
The full article is available here.