Rise in Swiss Debt Restructuring Moratoriums in 2023

In 2023, Switzerland experienced a significant rise in debt restructuring moratoriums, increasing by 59% from 59 to 94 cases compared to 2022. This trend reflects growing reliance on the legal mechanism to protect financially distressed companies, allowing them to restructure without immediately resorting to bankruptcy.

Despite this surge, Switzerland's use of debt restructuring remains low by international benchmarks. In 2023, moratoriums accounted for only 2.1% of such procedures, contrasting with higher figures in the US (33%) and Austria (7%). Nonetheless, 42% of these processes in 2023 were successful, indicating improved outcomes in business recovery.

The implementation of revised company laws in January 2023 appears to impact the proactive use of these instruments. Corporate bankruptcy numbers, already on the rise, suggest that demand for debt restructuring solutions will likely remain high in 2024 and beyond. The procedure offers critical advantages, such as creditor protection and operational restructuring.