Issues surround recognition of foreign bankruptcy decrees

Author: | Published: 17 Oct 2018

The recognition of foreign insolvency decrees in Switzerland is sometimes problematic

In an insolvency of a multinational group the debtor's assets are located in different jurisdictions. To what extent foreign insolvency administrators and creditors of a foreign debtor can access assets located in another jurisdiction depends on the local legal framework. Switzerland currently applies the concept of territoriality, according to which a foreign bankruptcy decree does not have any effect unless it has been formally recognised in Switzerland. Foreign insolvency administrators and creditors of a foreign debtor may only make claims for assets located in Switzerland after recognition of the foreign decree (and the opening of ancillary proceedings). From 2010 to 2014 there were approximately 50 applications for recognition of a foreign insolvency decree in Switzerland....