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FINANCIAL NEWS
UAE’s bankruptcy draft bill may be delayed until 2013-end
06 Dec 2012
(MENAFN) UAE’s long awaited bankruptcy draft law may be further delayed until the end of 2013, as negotiations are talking longer than expected, Reuters reported.
James Farn, a partner with commercial law firm Hadef & Partners, which was involved in drafting the bill, said “We are still in the consultative process, but we are a little unclear when the consultative process will finish.
“It’s certainly going to take months, perhaps the end of next year,” Farn, who heads the banking and finance team in the firm, said at a forum.
The draft law, which has been in the works since 2009, is aimed at simplifying the process and letting failing companies restructure. It should enable both listed and family-owned companies that get into trouble to restructure and be rescued rather than being forced to go through lengthy bankruptcy or liquidation proceedings.
The UAE government, through this new law, is seeking to reassure foreign investors and help attract more cash flow from overseas.
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