October 2020

On 16 April 2020, the Swiss Federal Council enacted the COVID-19 Insolvency Ordinance. One of its main goals was to relieve pressure on executive bodies of Swiss entities to request the opening of insolvency proceedings. Relief was targeted at over-indebtedness situations caused by negative impacts of the COVID-19 pandemic on liquidity, earnings and going-concern prospects. Further, the Swiss Federal Council put in place a special COVID-19 moratorium which was designed for SMEs. On 14 October 2020, the Swiss Federal Council decided not to extend such measures beyond 19 October 2020. This brings executive bodies of Swiss companies in a difficult situation if they have previously relied on the temporary exemption from filing obligations.