SWITZERLAND Trends and Developments Contributed by: Thiemo Sturny, Dominik Hohler and Estelle Mathis, Walder Wyss Ltd
Walder Wyss Ltd Seefeldstrasse 123,
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Continued Increase in Bankruptcies in 2024/2025, Outlook: Also Rising On 8 April 2025, the Swiss Federal Statistical Office published its latest bankruptcy and debt enforcement statistics. The number of bankruptcy proceedings ini - tiated against businesses and individuals under the Swiss Debt Enforcement and Bankruptcy Act (DEBA) reached a new record in 2024. A total of 17,036 bank - ruptcy proceedings under the DEBA were initiated in 2024, resulting in a 10.3% increase compared to the previous year. The number of bankruptcies has been rising since 2021 and has more than doubled since the early 1990s. Due to a change in the DEBA, which came into force on 1 January 2025 and now also allows bankruptcy proceedings to be initiated as a result of enforce - ment based on public law claims (namely tax claims), a further significant increase in bankruptcy cases is expected in 2025. More company dissolutions due to organisational deficiencies Company dissolutions due to organisational deficien - cies under Article 731b of the Swiss Code of Obli - gations (CO) are recorded separately from bankrupt - cies. In 2024, 2,835 such proceedings were recorded, resulting in an increase of 10.4% compared to the previous year, a trend broadly in line with the rise in bankruptcy openings under the DEBA. Financial losses hit record low In 2024, the number of completed bankruptcy pro - ceedings increased by 5.3% compared to the previ - ous year, reaching 16,550 cases and setting a new
record. This rise reflects the sharp growth in bank - ruptcy openings both in 2024 and in previous years. Financial losses from completed ordinary and sum - mary bankruptcy proceedings, however, declined for the fourth consecutive year. In 2024, these pro - ceedings resulted in losses of around CHF1.5 billion, approximately CHF550 million less than in 2023. This significant decrease (−26.5%) marks the lowest ever recorded. However, such figures can fluctuate consid - erably from year to year, depending largely on whether bankruptcies involve exceptionally large amounts. Over the past decade, annual losses have averaged just under CHF3 billion, with a peak of CHF8.2 billion in 2020. Shareholder and Related Party Loans in Corporate Distress On 31 March 2025, the Swiss Federal Supreme Court (SFSC) delivered its precedent-setting judgment in case 5A_440/2024. For the first time, the SFSC directly clarified the conditions under which loans from shareholders or related parties to financially dis - tressed companies are considered subordinated to other third-class creditor claims in bankruptcy pro - ceedings. The ruling settles a decades-long doctrinal debate and resolves inconsistencies in cantonal jurisprudence. It also provides clearer guidance for shareholders, lend - ers and board members navigating the complexities of corporate financing in times of financial distress. At the same time, important practical questions remain unresolved and will need to be addressed by the can - tonal courts, legal practice and, ultimately, the SFSC.
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