Realization of Co-Ownership Shares in Bankruptcy

Facts

This judgment of the Swiss Federal Court deals with the realization of co-ownership shares in bankruptcy. The court addresses the following questions in particular: - How is the bankruptcy dividend to be treated on a claim colloquized pursuant to Art. 130c(2) FSREO? - Is the mortgage claim that encumbers the property as a whole to be reduced in the land register by the amount of the bankruptcy dividend? - What happens to the co-ownership share of the debtor if the settlement negotiations and the auction of the share remain unsuccessful? - How does the failure to realize the co-ownership share affect the deletion of the company from the commercial register?

Considerations

The Federal Court comes to the following conclusions

1. The bankruptcy dividend on a claim colloquized pursuant to Art. 130c(2) FSREO is to be paid out immediately and not to be deposited. The mortgage claims that encumber the property as a whole are not subject to a suspensive condition and therefore do not have an uncertain due date.

2. If the debtor is only liable proportionately for the mortgage claim that encumbers the property as a whole, this claim is to be reduced in the land register by the amount of the bankruptcy dividend. In the case of joint and several liability, the claim must remain undiminished in the register until the issue of recourse has been clarified.

3. If the settlement negotiations and the auction of the co-ownership share remain unsuccessful, the share is…