Claw Back Rights Under Swiss Law

If bankruptcy proceedings are commenced against a debtor or if a debtor enters into a court-approved composition agreement with an assignment of all of its assets, transactions executed by the debtor during the last five years are subject to scrutiny.

The purpose of claw back claims is to recover assets extracted from or given away by an insolvent debtor for the benefit of its insolvency estate and ultimately its creditors. Transactions may be subject to claw back actions if:

1. within one year prior to the opening of bankruptcy or insolvency proceedings, assets were given away for free or without adequate consideration; or
   
   
2. within one year prior to the opening of bankruptcy or insolvency proceedings, the debtor was already over-indebted but nevertheless (a) provided security for existing obligations without being previously obliged to do so, (b) settled a monetary debt other than by cash or other common means of payment, or (c) discharged an undue debt;