Dismissal of the appeals of X. Spa in bankruptcy and Y. Spa against the judgment of the Geneva Court of Justice

Facts

X. Spa was an Italian company active in the grain trade. Z. SA, a Swiss company, organized the financing of X. Spa's exports. A dispute arose between the two companies, leading to the opening of X. Spa's bankruptcy in Italy in 1999. The bankruptcy trustee then brought an action in Switzerland against Z. SA to recover certain claims.

The Geneva Court of Justice annulled the first instance judgment that had upheld the trustee's claim, on the grounds that the bankrupt X. Spa did not have standing to act in Switzerland without having first obtained recognition of the Italian bankruptcy judgment.

The bankrupt X. Spa and Y. Spa, to whom the disputed claims had been assigned in the context of a composition agreement, appealed against this judgment to the Federal Tribunal.

Considerations

The Federal Tribunal dismissed the appeals.

It considered that the recognition in Switzerland of a foreign bankruptcy judgment is a prerequisite for the foreign bankruptcy administration to carry out any legal act in Switzerland, including the filing of a lawsuit to assert the bankrupt's claims. This recognition allows the opening of an ancillary bankruptcy proceeding in Switzerland, which aims to protect the secured and privileged creditors domiciled in Switzerland.

Allowing the…