On March 16, the Swiss Parliament approved a revision of the Federal Act on Private International Law, modifying the rules on international insolvency.
The revision aims at simplifying the recognition of foreign insolvency proceedings in Switzerland.
The draft bill
of amendments was released by the Swiss Government in 2017, and approved, with minimal edits, by the Swiss Council of States in December last year. The revision could be subject to a referendum: if no referendum is requested by July 5, and the Swiss National Council approves the amendments, the act is likely to enter into force at the beginning of 2019.
Under the current law, a foreign bankruptcy judgment rendered abroad has no immediate effect in Switzerland unless it has been recognized in this country. To have it recognized, it is necessary that the judgment is rendered in the state of the debtor's seat or domicile, that the judgment is enforceable in the state where it was rendered and, importantly, that the state in which the judgment was rendered grants reciprocity.
The amended act establishes that a foreign judgment would be recognized even if the judgment was rendered in the state where the debtor's centre of main interests (COMI) is situated.