UAE Bankruptcy Law Vital For Business Growth » Gulf Business

UAE Bankruptcy Law Vital For Business Growth » Gulf Business:



"At the end of last year, it was announced that the UAE’s long awaited reform to the insolvency laws had moved a step closer to becoming a reality. The implementation of a modern bankruptcy regime has long been seen as a key part of the continuous development of the country’s economy. The proposed new laws have been in the pipeline since 2009, and would enable both listed and privately-owned companies that get into difficulties the option of restructure and rescue rather than being forced to wind up. There is little precedent in the Middle East, and reports at the end of 2012 suggested that the new proposals were being loosely based on French bankruptcy legislation. They are understood to contain measures like a moratorium on creditor claims, as is commonplace in other jurisdictions. But the main effect would ideally be to offer better support and other options to struggling companies, whilst at the same time giving assurance to investors and creditors."



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