Dubai: Winning an additional 12 months to pay off claims will be the biggest gain for troubled business from the UAE’s newly reworked Bankruptcy Law.
What this does is introduce “flexibility” into the UAE’s still-developing bankruptcy regime. “Of particular note appears to be the suspension of the requirement for the debtor to file for bankruptcy should they fail the usual “cashflow” and/or “balance-sheet” tests,” said Matthew Dyson, banking and restructuring expert at the law firm Pinsent Masons.
“This is welcome as debtors who otherwise have the support of their creditors to continue trading while technically unable to satisfy the solvency tests would otherwise have had little option but to file for bankruptcy.”
Originally Published on November 25th, 2020.