UAE: Bankruptcy law amended to cover pandemic situations

The UAE Cabinet has approved amendments to the provisions of the Federal Law by Decree No. (9) of 2016 on Bankruptcy.

The amendments stipulate the addition of new provisions to the law with regards to “emergency situations” that impinge on trade or investment, in order to enable individuals and businesses to overcome credit challenges in times of pandemics, natural and environmental disasters, wars, etc.

The amendments are aimed at ensuring fulfilment of obligations, and mitigating loss given default without prejudice to bankruptcy law, while enabling creditors to secure their rights.

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