7 December 2016
The New UAE Bankruptcy Law (the New Law) will enter into force on 29 December 2016, the objective being to modernise and streamline bankruptcy procedures available for UAE companies whilst maintaining a backdrop of accountability for directors of failed enterprises.
The insolvency procedures in the New Law comprise (i) a court-based debtor-led protective composition procedure and (ii) formal bankruptcy (which includes a rescue within bankruptcy and liquidation), which have been revamped to include beneficial features from other insolvency regimes - most notably – the ability to raise debtor-in-possession style funding during protective composition.
In this briefing we highlight some key features of the New Law, including an overview of the insolvency procedures, and we also discuss some features arising from the New Law for clients to consider further.
New UAE Bankruptcy Law: Analysis and highlights