Can a company in the UAE still operate if it has declared bankruptcy?

Hello,

In the UAE, a company that declares bankruptcy can still operate under certain conditions, but it usually depends on the type of bankruptcy proceedings and the measures taken by the company and the courts.

If a company is liquidated, it means its assets are sold off to pay creditors, and it ceases operations. This typically means the company will no longer operate.

In cases of reorganization, the company must operate under court supervision. This means that their operations, financial decisions, and restructuring plans will typically require approval from the court.

A company in the UAE that declares bankruptcy may still operate if it enters a reorganization process approved by the court.

However, if it goes into liquidation, it will cease operations.

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Greetings.

No, it is not necessary for the company to stop completely when it declares bankruptcy.

It can continue its activity to regain its capabilities.

Bankruptcy means that the company is unable to meet its financial obligations.

We are honored to provide you with legal support. For further inquiries about your topic, you can come to our office or contact us on WhatsApp.

Dear questioner

Yes, a company in the UAE can still operate after declaring bankruptcy under certain conditions.

The New UAE Bankruptcy Law introduced a mechanism called "Preventive Settlement," which allows a debtor to continue operating its business under court supervision while working toward a settlement with its creditors.

Good morning

No, a company in the UAE cannot continue to operate after being declared bankrupt.

Bankruptcy in the UAE signifies the company's inability to repay its debts, leading to the liquidation of its assets to satisfy its creditors.

A company in the UAE can still operate after declaring bankruptcy but with certain limitations.

The company enters a process known as "preventive settlement" or "bankruptcy proceedings." During this period, the company can continue its operations under the supervision of a court-appointed trustee.

Thank you for your inquiry.

In the UAE, once a company declares bankruptcy, its ability to operate is significantly impacted.

However, under the UAE Bankruptcy Law, there are mechanisms for restructuring and protection from creditors, depending on the specific circumstances of the case.

In some instances, the company may continue operating under a court-supervised plan aimed at rehabilitation, rather than outright liquidation.

The details of your company’s situation will determine the best course of action, and I’d be happy to provide more guidance tailored to your case.

Please feel free to reach out to me through WhatsApp or phone to discuss this further. You can also email me for more information.

Best regards,

Suhail Rana