17/4/2020 - Insolvency prevention measures – COVID-19 Deferments
The Federal Council has decided to provide further relief to debtors under financial distress due to the corona crisis through the COVID-19 Deferments program. This program introduces a facilitated application process for time-limited deferments.
COVID-19 Deferments can be applied for by sole proprietorships, partnerships and legal entities and granted for a period of up to 3 months. In order to qualify, applicants may not have been over-indebted as of December 31, 2019 or must document subordination to the full extent of over-indebtedness.
Applications must credibly represent and, to the highest degree possible, show proof of the respective company’s current finances and assets.
Applications will be adjudicated by the applicable probate courts on an immediate-processing basis.
Upon request, the probate court may consider extending a COVID-19 Deferment for up to 3 months.
By submitting a COVID-19 Deferment application for a legal entity, its directors fulfill their legal obligation to report over-indebtedness.
COVID-19 Deferments are not available to public companies as well as enterprises that exceeded two of the following criteria in 2019: CHF 20 million in total assets, CHF 40 million in revenues and an annual average of 250 full-time employees.