My company in Dubai has stumbled because of the debt accumulation on it can I restructure and leave the market safe to protect my rights and the rights of creditors
- Yes, you can, the law has given debtors the opportunity to regulate their finances and schedule their debts, providing an investment environment that investors do not hesitate to enter, considering it a safe area for investment without risk, and a “safe exit” for investors from the market. Or continue to do business if the restructuring succeeds and the debt becomes repaid and they do not have to flee and exit outside the country as a result of their stumpling
This was regulated by the Bankruptcy Act No. 9 of 2016, Decree-Law No. 23 of 2019. This included amending some provisions of the bankruptcy code
These measures are the lifeline of many businessmen who have faced difficult challenges
The application is made by the debtor, whose debts have been defaulted for more than 30 days from the date of maturity or the creditor is in a normal debt of at least 100
- A thousand dirhams if the debtor fails to pay the debt within the next 30 days of the due date or the arbitrator upon request of the Prosecutor.
And __ regulates the various bankruptcy cases faced by distressed companies in the UAE, identifies the legal tools necessary to avoid bankruptcy and liqualize the debtor’s funds, including:
• extra-court financial re-regulation
• bankruptcy-protective reconciliation
• Financial restructuring_
• _access to new loans on terms determined by law
• the legal framework for converting protective measures of good into bankruptcy procedures.
Noting that the Bankruptcy Law does not apply to natural persons, but only to companies specified by law, including the following:
Companies subject to the provisions of the Commercial Companies Act.
2.Companies that are not established by the law of commercial companies wholly or partially owned by the federal or local government and whose legislation, founding contracts or statutes provide for their subordinating to the provisions of this Decree-Law.
3.Companies and institutions in free zones that are not subject to special provisions governing bankruptcy, restructuring and bankruptcy procedures, subject to Federal Act No. 8 of 2004 on Financial Free zones.
4.any person who enjoys the status of a merchant in accordance with the provisions of the law.
5.licensed civil companies of a professional nature.