Doubts cast on new UAE bankruptcy law for restructurings | The National

Doubts cast on new UAE bankruptcy law for restructurings | The National:



"The planned new bankruptcy law – a flagship piece of government legislation - is likely to be bypassed by any large companies restructuring debt in future, say lawyers.



Several companies, mainly owned by the Government, have restructured billions of dollars of debt since the global financial crisis in 2009. Most deals have been resolved privately outside the courts, a sometimes lengthy and complex process. The exception was a special tribunal set up by the Dubai Government in 2009 to decide financial disputes related to the debt restructuring of Dubai World and its units.



In a bid to enhance the development of the economy and create a single, clear and transparent path to guide the reorganisation of any companies in financial distress in the future, officials have drawn up a new bankruptcy law to replace existing outdated legislation."



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