11 Broadway, Suite 615 New York, New York USA 10004 +1 (917) 775-0198 (p) +1 (646) 395-1725 (f)
Khalil Khazindar Law Firm in Association with JASON HUF INTERNATIONAL pc Ammar Commercial Center Al Murjan Street (off of King Abdul Aziz Street), Office # 202 P.O. Box 157, Jeddah 21411 Kingdom of Saudi Arabia +966 (2) 4204763 (p) +966 (2) 4204729 (f) www.khazindarlaw.com ______________________________
In a somewhat pioneering step, the United Arab Emirates (UAE) is close to finalizing an Insolvency Law modeled after Chapter 11 of the United States Bankruptcy Law.
The devil will be in the details, but here is what we've heard thus far:
Under the supervision of a UAE court, a distressed company that successfully files for such protection will be able to restructure its debt with outstanding creditors;
The law may include some degree of decriminalization of issuing dishonored, or "bounced", checks (cheques, for our British friends); and,
The overarching goal of this legislation is to improve the business environment by removing (or, at least, mitigating) some of the uncertainty of risk that may arise when investing in a country which may be rich with disposable income, but which is still "developing" - where the economy, laws and political system are still rapidly evolving.
The extent to which such protections would be available to companies with some element of foreign ownership remains unclear. However, if it is well done, this new Insolvency Law could prove to be a significant long-term development for the economy of the UAE, and (perhaps) the Gulf Cooperation Council region more generally.
With the election of a new Federal National Council, one might anticipate final passage of the new Insolvency Law soon. Perhaps. Inshallah. More to come...
This website is a law firm advertisement and none of the contents herein constitute legal advice, nor should anything herein be mistaken as such. Jason Huf International, pc and R. Jason Huf will not be held responsible for the costs, liabilities or other consequences of any action(s) taken by third parties based on the contents of this website.
The substantive content of this website is the property of Jason Huf International, pc and may not be reproduced, in whole or in part, in any form whatsoever for any purpose without the permission of R. Jason Huf. In particular, reproduction of any of the substantive material published herein for commercial purposes is strictly prohibited unless authorized, in writing, by R. Jason Huf signing on behalf of Jason Huf International, pc.