What can our company do to avoid action from a creditor company?

Respected Madams & Sirs,

We are a commercial trading company registered in Dubai - UAE and we import goods and sell them in the local market.

Since the end of 2019, we were not in a good financial position and followed by COVID pandemic further declined our business.

There is a delay in payment to our international "European" supplier (Euro 18 thousand). Our intention is to clear their payment but we need more time.

At present, they are proceeding to take legal action against our company.

We wish to know, will there be any action taken against our company as per the UAE Law?

Also, what steps we should take to avoid any criminal charges?

Thank you.