Questions & Answers
Insolvency process of a bankrupt limited liability company
Hi.
I would like to file for bankruptcy for one of my mainland LLC companies under the new bankruptcy law in the UAE and would like to connect with law firms that provide this service.
For the first meeting with such law firms, I am looking for free consultation only.
Thanks.
The new UAE Bankruptcy Law (Federal Law No. 9/2016) came into force on 29th December 2016.
It applies to companies which are established according to the UAE Commercial Companies Law (Federal Law no. 2/2015).
Primarily there are two tests that are required i.e. cash flow test and balance sheet test. In short, if your assets do not cover the liabilities then only your company is eligible.
This criterion is aimed to try to restructure your debts before resorting to bankruptcy.
Insolvency Process
There are two court procedures viz.
1) A debtor-led process
2) Formal bankruptcy/ liquidation procedure
While a liquidation is the process by which a company’s existence is ended, which can be (but is not always) bankruptcy-related and which falls under Federal Law No. 2 of 2015 (“Companies Law”), governing liquidation proceedings.
Please contact me for an appointment.
With best regards,
Mrs Khan
