In 2024, 131 debt restructuring proceedings were registered in Switzerland, representing 2.5% of all insolvency cases – Switzerland’s adoption rate trails behind other European countries but the trend indicates a catch-up.

The latest release of our annual Swiss debt restructuring moratorium study shows a 40% increase in the number of cases in Switzerland during 2024 compared to 2023 – reaching the highest level in six years.

The debt moratorium is an effective legal instrument allowing financially distressed companies to protect themselves from creditors, gain time to restructure businesses, and safeguard jobs instead of heading into bankruptcy. The advantages of a debt moratorium include the suspension or protection against debt enforcement and legal proceedings, the possibility of terminating continuing obligations under certain conditions, the elimination of the obligation to establish a social plan, and execution of a disposal transaction without clawback risks. Detailed information about how the debt moratorium process works and its advantages can be found in our detailed compendium.

In view of the general economic uncertainties, the deteriorating consumer sentiment, rising interest rates, geopolitical conflicts, and new trade barriers, the authors expect restructuring activity to remain high and the use of insolvency proceedings to continue increasing.

EVOLUTION OF THE NUMBER OF CASES 2019 - 2024

HOW A&M CAN HELP

A&M has worked with some of the largest European and global organisations to stabilise financial performance, transform operations and accelerate results through decisive action.

When traditional improvement activities are not enough, A&M’s restructuring and turnaround heritage brings fact-based, action-oriented leadership to transformation and delivers rapid results. Our professionals have both operations and advisory experience together with a proven track record in leading businesses through tough, complex situations, often characterised by liquidity and time constraints.

They have deep expertise in distressed business planning, cash forecasting and management, working closely with company management teams and boards of directors as they address critical challenges.

To learn more about our expertise and to understand the full scope of our work please get in touch with one of our key contacts.