Why Choose Artelion Law for Business Insolvency and Restructuring in Switzerland?

In Switzerland, businesses facing financial distress have access to a robust legal framework designed to help them recover, restructure, and avoid liquidation. The Swiss insolvency system provides a range of options, from preventive measures to restructuring processes, all aimed at protecting creditors while giving struggling businesses a second chance. 

Artelion Law is the ideal partner for navigating these complex legal processes.

Here’s how we can help your business successfully manage insolvency and restructuring, while safeguarding your operations and reputation.

1. Insolvency Law in Switzerland

Swiss insolvency law is primarily governed by the Swiss Debt Enforcement and Bankruptcy Act (SchKG). Key aspects include:

• Insolvency: A business is considered insolvent if it cannot meet its payment obligations as they become due, and if its liabilities exceed its assets.
• Bankruptcy Proceedings: If restructuring is not viable, a company may enter into bankruptcy, which typically leads to the liquidation of its assets.
• Reorganization Proceedings: For businesses facing financial difficulties but with the potential to continue operating, Swiss law allows for reorganization, which allows businesses to restructure their debts and operations under court supervision, without entering bankruptcy.

2. Types of Insolvency Procedures for Businesses

• Ordinary Bankruptcy: The company is liquidated, and its assets are sold to satisfy creditor claims. This is typically the outcome when reorganization is not an option.
• Composition Proceedings (Reorganization): If your business can still operate, it can enter into composition proceedings. This gives you the chance to restructure debts and operations under judicial supervision.
• Interim Relief: Businesses facing imminent financial distress can apply for temporary protection from creditors, allowing time to stabilize and initiate a restructuring process.
• Voluntary Liquidation: If your company’s shareholders decide to shut down the business, voluntary liquidation may be an option.

3. Advantages of Restructuring for Your Business

• Preserving Business Value: Restructuring helps preserve valuable assets, reduce liabilities, and avoid the damaging effects of liquidation.
• Avoiding Bankruptcy: A carefully executed restructuring plan can help your business avoid bankruptcy, which can lead to the sale of assets, loss of reputation, and severed business relationships.
• Improved Creditor Relations: Reorganization allows for the renegotiation of terms with creditors—such as extending payment deadlines, reducing the debt, or converting debt into equity—making recovery more achievable.
• Employee Retention: A restructuring process can help safeguard jobs and avoid business closure, minimizing the social impact and ensuring that operations continue smoothly.

4. Steps in the Swiss Insolvency Procedure for Businesses

1. Assessing Financial Distress: The first step is evaluating whether your business qualifies for insolvency proceedings or if there’s a possibility of recovery through restructuring.
2. Restructuring or Bankruptcy Petition: If your company is insolvent, you can file for bankruptcy or initiate a restructuring procedure with the court, usually presenting a reorganization plan to creditors.
3. Court Supervision and Administration: If granted restructuring protection, the court will appoint an administrator or supervisor to ensure that the process complies with the law.
4. Negotiations with Creditors: The company will engage in negotiations with creditors to restructure its debts. This often requires expert input from restructuring lawyers and insolvency professionals.
5. Final Approval: If creditors approve the restructuring plan, it will be submitted to the court for final approval. Once approved, the restructuring process is completed, and your business can return to normal operations.

5. Why Use Artelion Law for Business Insolvency and Restructuring?

At Artelion Law, we specialize in guiding businesses through the complexities of insolvency, restructuring, and corporate recovery. Here’s why partnering with us makes a difference:

1. Deep Expertise in Swiss Insolvency Law

• Artelion Law provides expert guidance through every stage of the restructuring process, ensuring compliance with Swiss insolvency laws (SchKG) and other relevant regulations.
• Our lawyers are experienced in handling all aspects of bankruptcy, liquidation, and corporate restructuring—from filing petitions to negotiating debt reduction or more favorable payment terms.

2. Tailored Restructuring Plans for Your Business

• We create customized restructuring plans tailored to your company’s unique financial situation, including negotiations with creditors, cost-cutting strategies, and restructuring of debt to maximize recovery potential.
• Our team works directly with both creditors and the court to ensure that your restructuring plan is viable and will be approved, allowing your business to continue operations.

3. Expert Debt Negotiation

• Artelion Law specializes in negotiating favorable terms with creditors. We help businesses secure debt rescheduling, convert debt into equity, or even achieve debt write-offs, all of which can provide immediate relief and improve the chances of long-term recovery.
• With strong relationships in the financial and legal sectors, our team can leverage its network to obtain the best possible outcomes for your business.

4. Protection from Creditors

• We help businesses obtain interim relief during the restructuring process, which offers temporary protection from creditors. This protection allows your company to stabilize its finances and reorganize without the constant threat of liquidation or asset seizure.

5. Minimizing Personal Liability Risks

• Our team provides strategic advice to business owners and directors on minimizing personal liability risks. In Switzerland, directors can be personally liable if the company continues to operate while insolvent. Early legal intervention can help mitigate these risks and protect your personal assets.

6. Strategic Advice for Business Continuity

• At Artelion Law, we go beyond legal compliance. We offer practical, strategic advice to ensure your business continues to operate smoothly during the restructuring process. This includes guidance on operational adjustments, cost-saving measures, and managing employee relations to improve liquidity.

7. Reputation Management

• We understand how critical your company’s reputation is. Our team helps you manage stakeholder relationships, including with creditors, suppliers, and customers, ensuring that your commitment to recovery is clear and your brand is protected throughout the restructuring process.

8. Cross-Border Expertise for Multinational Businesses

• If your company has international operations or creditors in other jurisdictions, Artelion Law has the experience to handle cross-border insolvency and restructuring matters. We understand the complexities of multinational financial structures and can navigate them effectively.

9. Fast and Efficient Action

• In insolvency and restructuring matters, time is of the essence. Artelion Law is equipped to act quickly, offering immediate advice and practical solutions to guide your business through the insolvency or restructuring process as efficiently as possible.

 Insolvency and restructuring provide businesses with an opportunity to recover from financial distress and avoid liquidation. By partnering with Artelion Law, you gain access to expert legal guidance, customized restructuring plans, and effective negotiations with creditors—all aimed at preserving your business operations and achieving financial recovery. Whether you’re seeking protection from creditors, negotiating debt, or managing corporate insolvency, Artelion Law’s expertise is the key to successfully navigating these complex legal and financial challenges.