UAE – Mubasher: The UAE’s Cabinet has approved a law related to insolvency and bankruptcy, thus taking a new step in the country’s development of its legislation. The new law allows companies nearing bankruptcy to restructure instead of liquidating the firm, as well as raising its credit and organising its payment of accumulated debt.
The new law, approved on Sunday, is said to be largely based on French insolvency practices, along with provision and legal codes from Germany, the Netherlands and Japan.
“The draft law aims to regulate accumulated debts, eases restructuring of companies as well as support troubled businesses,” said Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, on his official website, adding that “The draft law aims to mitigate risk of bankruptcy and ensure a safe and attractive business environment in the UAE that nurtures and supports investments.”
