Frequently Asked Questions

Which are the effects of the opening of the bankruptcy procedure?
Interest due by a bankrupt institution stops running at the opening of the bankruptcy procedure (art. 209 Federal Statute on Debt Enforcement and Bankruptcy).
At the opening of a bankruptcy proceeding all obligations of the bankrupt institution become due against the bankrupt estate with the exception of those which are secured by mortgages on real estate (art. 208 Federal Statute on Debt Enforcement and Bankruptcy). With the opening of the bankruptcy procedure all debts of the bankrupt institution become payable, with the exception of those secured by pledged real estate collateral of the bankrupt institution (art. 208 LP).
A claim made in a foreign currency will be converted into domestic currency (CHF)at the exchange rate applicable on the day of the opening of bankruptcy proceedings.

 

I am creditor of Kaupthing, Geneva branch. What are my rights and my obligations?

- I am a client of the bank:

1. I am a client of the bank and have less than CHF 5’000.- in my account (small deposit):
All small deposits not exceeding CHF 5'000.- (principal and accrued interest) were refunded to all customers concerned on October 16 and 17, 2008 and the account have been closed.

2. I am a client of the bank and have less than CHF 30'000.- (principal and accrued interest) in my account (privileged deposits):
Repayment of privileged deposits up to CHF 30'000.- is guaranteed by the Deposit Protection of Swiss Banks and Securities Dealers. As of December 23, all clients have been repaid under the deposit protection scheme.

3. I am a client of the bank and had more than CHF 30'000.- in principal and accrued interest on my account (privileged deposits):
Repayment of privileged deposits up to CHF 30'000.- is guaranteed by the Deposit Protection of Swiss Banks and Securities Dealers. As of December 23, all clients have been repaid under the deposit protection scheme.

The repayment of the balance of the account is not guaranteed and repayment, if any, will depend upon the amount of assets available after the repayment of preferred creditors. Where claims are recorded in the books of the institution notice will be presumed to have been given. It is therefore not necessary to file an additional notice of the claim (art. 36 (1) Federal Statute on Debt Enforcement and Bankruptcy).

4. I have titles and negotiable instruments (actions, obligations etc.) lodged with the bank:
In the event of the liquidation of the bank by way of bankruptcy procedure, the deposited titles, will be segregated from the bankrupt estate for the benefit of the depositor and returned to the depositors, subject to any and all possible rights the bank may have against the depositors.

- I am creditor of the bank (e.g. supplier, agent, service provider) or I am entitled to put in claim the goods in possession of the bank:
The creditors as well as all the people who are entitled to put in claim the goods in possession of the bankrupt establishment are invited to produce in writing within the time limit their claims or their demands to the liquidators of the bankruptcy, accompanied by evidence.

 

I am debtor of Kaupthing, Geneva branch / I am a third party possessing assets of Kaupthing, Geneva branch. Which are my obligations?
The debtors of the bankrupt institution as well as those who are in possession of assets of the bankrupt institution must give notice to the liquidator within the time limit set for the announcement of debts and provide the liquidators with the goods concerned. The debts and duties which are subject to netting must also be announced.

Violations of the above-mentioned obligations will result in fines pursuant to art. 50 LB and 324(2)(3) CP.

The professional secrecy c’ant be raised as objection against the liquidators.

 

I am located abroad. Where the notices have to be sent by the liquidators?
Notice to interested parties located abroad will be serviced at the domicile or legal seat of the liquidators until they have elected a domicile in Switzerland.

 

Which authority opened the bankruptcy procedure?
The Federal Financial Market Supervisory Authority (FINMA) is competent to open bankruptcy proceedings involving institutions under its supervision and the supervision of the liquidators it nominated.

 

Which provisions apply to the banks’ bankruptcy procedure?
The art. 33 ff Swiss Banking Act adopted on November 8, 1934 apply to banks’ bankruptcy proceedings.

The Swiss Banking Act provisions are specified by the Swiss Ordinance on the Banking Bankruptcy adopted on June 30, 2005.

 

What are the role and the tasks of the liquidators?
The FINMA appointed Lionel Aeschlimann and Vincent Jeanneret, from the Law Firm Schellenberg Wittmer, as liquidators. The liquidators are registered as such into the Swiss Commercial Registry and are the one and only persons to act on behalf of the bank.

The liquidators (art. 9 Swiss Ordinance on the Banking Bankruptcy) have the duty to take care of the conservation and the realization of the assets, to take care of the business management to the extent necessary to the banking procedure, to represent the bankrupt’s estate in front of the courts and, in collaboration with the Deposit Protection set up by the Swiss Banks and Securities Dealers, to take care of the inventory and the payment of the deposits guaranteed according to art. 37h Swiss Banking Act.

The liquidators must check the claims (art. 24 Swiss Ordinance on the Banking Bankruptcy) and draw up a schedule of claims (art. 25 Swiss Ordinance on the Banking Bankruptcy).

 

How can I obtain current information on the course of the procedure?
The liquidators will regularly publish over the present website information on the current procedure.

 

Last update: 20.01.2009