Workshop on Bankruptcy and COVID-19 organized by SLC in Dubai with participation of 68 local government entities
The General Secretariat of the Supreme Legislation Committee in the Emirate of Dubai (SLC) newly held an awareness workshop titled Bankruptcy and the Coronavirus Pandemic with sixty-eight (68) government entities and several banks and regional companies based in Dubai participating in it. The workshop focused on spreading legislative and legal awareness on corporate bankruptcy and insolvency of traders and individuals amid the global repercussions and challenges posed by the COVID-19 pandemic.
The virtual workshop, which was held through Microsoft Teams, discussed the provisions of Federal Law by Decree No. (21) of 2020 Amending Federal Law by Decree No. (9) of 2016 Concerning Bankruptcy, which was issued to highlight the UAEs proactive efforts aiming to develop the legislative and legal frameworks of various vital sectors, in particular the commercial sector, being a stepping stone towards achieving the strategic objective of preparing for the next fifty years.
The workshop threw light on defining bankruptcy and its regulation in the UAE, the applicable methods for declaring a debtor's bankruptcy, as well as the means of preventing bankruptcy in light of the amendments adopted to face the repercussions of the global Covid-19 crisis.
The attendees were given a detailed overview of the role of the recently adopted amendments in protecting the business and investment community and helping companies overcome credit challenges and decrease losses due to loan defaulting in emergency situations, which also included epidemics and natural and environmental disasters. Such amendments offer flexibility when it comes to suspending judicial and executive procedures on the debtors funds for a specified period, to allow him enough time to clear payments.
Debtors now have the opportunity to reach settlements with creditors after submitting applications to the competent court, whereby they reserve the right to request a maximum of 12 months time to negotiate with creditors. Debtors can now get new financing to secure the financial liquidity necessary for the recovery of their businesses and secure enough capital to overcome the challenges that emerge during emergencies.
Ahmad bin Meshar Al Muhairi, SLC Secretary General, explained that the amendments upgrade the federal legislative structure, which will help the UAE prepare for the coming 50 years of development. The new amendments safeguard all concerned parties from repercussions of emergencies such as the ongoing COVID-19 pandemic.
The recent amendments to the federal bankruptcy law highlight their pivotal role in enhancing the competitiveness of the UAE on the global economic map. This workshop has offered insights into the benefits of the amendments which aim to create a flexible and advanced legislative and legal system to stimulate business and investment within an attractive, safe, and sustainable economic
environment. The amendments are in line with the insightful vision of our wise leadership to make qualitative leaps in the national economy in the coming years. added Al Muhairi.
He also said: We hope to conduct more interactive workshops in the future to continue generating interest from government entities which will provide the push to continue raising awareness and knowledge to ensure the optimal implementation of legislation to serve the aspirations of the UAE government of being the fastest, most flexible, most resilient and prepared for future changes.
