Drydocks World a positive test case for UAE bankruptcy reform | The National

Drydocks World a positive test case for UAE bankruptcy reform | The National:



"The issuance of Decree 57 by the Dubai Government in December 2009 introduced the UAE’s first modern framework for insolvency law, designed to handle cases involving modern companies with tiered capital and international operations.



The framework enabled companies in the Dubai World family to enter into a court-driven insolvency practice while continuing to trade, with a temporary stay of creditor claims.



Crucially, the framework allows for a company’s restructuring plan to be officially passed if holders of 75 per cent of the company’s debt give their approval, meaning that a company’s restructuring cannot be held hostage by smaller hostile creditors."



'via Blog this'