Coronavirus Pandemic – Bankruptcy and debt restructuring
When a company goes bankrupt, the gift cards you may be holding can become worthless. In addition, it may be difficult to assert your rights for returns or to makes claims under warranties on goods you have purchased from the company.
Retail shops in bankruptcy
When a company goes bankrupt and closes its retail outlets, this can negatively impact you as a consumer. If you have a gift card for the shop, it may become worthless. It can also become difficult to make claims regarding goods purchased or make use of warranties on goods purchased from the company. You can still make claims concerning items that you have purchased, however it may be instead that you will need to approach the supplier or manufacturer of the goods.
If you made payment by credit card, relying on the protection of the Swedish Consumer Credit Act you can contact the creditor (e.g. your bank) with your claim for compensation and possibly obtain a reversal of charges.
Debt restructuring of a retail shop
If a company is under debt restructuring, it means that the company is undergoing restructuring in order to avoid bankruptcy. The provisions of the Swedish Company Reorganisation Act (1996:764) may affect your right to utilise gift cards, as well as to assert complaints and rights under warranties. It depends upon what the reconstructor working with the financial restructuring has decided. Therefore inquire in the shop what applies to your particular claim!
Airlines in bankruptcy
When an airline goes bankrupt, you may be able to get your money back. However the chances are different depending upon how you have paid for your ticket. If you have paid for the ticket by credit card, you can direct the same claims to the creditor, e.g. your bank, as you can to the seller.
If the airline contracted by the operator goes bankrupt and the flight is part of a package holiday, you should contact the tour operator for assistance.
Debt restructuring of an airline
If an airline is under debt restructuring, it means that the airline is being restructured for the purpose of exploring if it is possible to rescue the airline. This means that the airline is not allowed to pay out anything during the time the debt restructuring is underway. Therefore if you have a claim against the airline you will need to await the outcome of the restructuring.
Package tour operator in bankruptcy
If your package tour is cancelled due to a company becoming insolvent or declaring bankruptcy, you can receive compensation from the Travel Guarantee Fund. You can apply for compensation from the Legal, Financial and Administrative Services Agency. The travel guarantee is governed by the Swedish Travel Guarantees Act and applies specifically to package tours. Regular airline tickets for scheduled flights are excluded.
Nor are package tours that have been cancelled due to a pandemic encompassed within the travel guarantee, even if the organiser has gone bankrupt before you have received your money back.
- Proofread 3 July 2020