Financial Restructuring and Bankruptcy Law — articles 1–100

For the purpose of applying the provisions of this Law, the following words and expressions shall bear the meanings assigned thereto respectively, unless the context requires otherwise: The State: The United Arab Emirate…

Upon applying or interpreting the provisions of this Law, the following objectives shall be observed: 1. Maintain the vitality of the national economy. 2. Preserve the rights of creditors. 3. Provide assistance to the de…

1. The provisions hereof shall apply to: a. That companies that are subject to the provisions of Commercial Companies Law; b. Any natural person having the capacity of a trader; and c. Licensed civil company of a profess…

No application may be filed in relation to any debt owed by any of the companies and corporate bodies that are supervised by the regulatory authorities unless and until ten (10) days have passed following the notificatio…

Federal and local courts shall have the jurisdiction, according to the rules of jurisdiction set forth in the Civil Procedure Law, to adjudicate on the disputes arising out of the application of this law and shall decide…

1. The Bankruptcy Court may seek the assistance of a sufficient number of experts and auditors to be selected by the competent judicial authority. 2. If the expert or auditor is not listed in the roster of experts kept w…

Judgments rendered by the Bankruptcy Court according to this law shall become immediately enforceable once rendered with no need to be served, and their stay of execution may only take place in the cases prescribed under…

Decisions issued by the Bankruptcy Court according to this law shall become writs of execution, and the Bankruptcy Department shall affix the executive form thereon according to the procedures prescribed by law. Such dec…

1. An organizational unit to be known as "Bankruptcy Department" shall be established at the Bankruptcy Court's headquarters, and shall be headed a judge whose rank is not less than an appeal judge. 2. The Bankruptcy Dep…

The Bankruptcy Department shall perform the following functions: 1. To receive and register the applications to be received according to the provisions of this law; 2. To serve notices to the interested persons according…

The Bankruptcy Department shall submit all applications, notices, objections, grievances and memoranda received thereby to the head of the Bankruptcy Department or his designee as soon as they are received, in order for …

1. A unit, to be known as the "Financial Restructuring and Bankruptcy Unit", shall be established in the Ministry, and shall comprise a sufficient number of employees having experience and specialty in financial, legal o…

The Financial Restructuring and Bankruptcy Unit shall perform the following functions: 1. To coordinate with the regulatory authorities and competent Bankruptcy Courts for managing the financial restructuring and bankrup…

All the procedures set forth in this law may be carried out through modern technology, including, in particular: 1. Submission of applications; 2. Service of notices and notification; 3. Grievances, objections and appeal…

1. The debtor may submit to the Bankruptcy Department an application for the initiation of preventive settlement, or bankruptcy proceedings, not later than sixty (60) days from the cessation of payment date or from the d…

1. An ordinary creditor or a group of ordinary creditors may submit an application to initiate or Bankruptcy Proceedings in the event that the debtor defaults on any or more debts owed to them, provided that this debt is…

If the creditor or any of the creditors refrains from claiming its debt due to the settlement of such debt or an agreement with the debtor to postpone its repayment or for any other reason after submitting the request, t…

1. The regulatory authority may submit an application to initiate proceedings or a bankruptcy application regarding any debtor supervised thereby. In addition, it shall submit evidence that the debtor is in a state of ce…

1. If multiple applications are submitted regarding the debts of the same debtor, they shall all be combined, and a single action shall be taken regarding them altogether. If these applications include a preventive settl…

1. If the debtor is a company, it is permissible to submit an application for the initiation of proceedings regarding its debts, even if it is in a state of liquidation or a court order is issued to dissolve the company …

1. Subject to the provisions of Article (16) of this Law, an application to initiate the proceedings may be submitted after the death of the debtor, its retirement from trade or its loss of capacity within the two years …

The application shall be submitted by the debtor or the regulatory authority, indicating the required proceedings and its reason, the previously-submitted applications and the related measures, if any. The following docu…

1. If the applicant fails to submit data, information and documents in accordance with Article (22) of this Law due to its inability to obtain them from the entity holding the same, the Bankruptcy Court may order any per…

The application submitted by the creditor shall contain a statement of the reasons and shall be accompanied by a copy of the notice described in Article (16) of this Law and any data, information and documents in relatio…

1. Except for the applications submitted by regulatory authorities, the applicant shall deposit with the court treasury a sum of money or a bank guarantee. The Executive Regulations of this Law shall determine its rate b…

The Bankruptcy Department shall notify the Unit of application for initiation of the proceedings and their attachments and of every decision and proceedings taken therein, not later than (10) ten days from the date of su…

Within (10) ten days from the date of being notified of the application or within the period specified by the Bankruptcy Court, the Unit shall evaluate the debtor's position with respect to the debts owed to institutions…

1. The Bankruptcy Department shall notify the debtor of the application, not later than (10) ten days from the date of its submission if the application was not submitted by it, and the debtor shall provide its response …

1. Except for the cases where an application to initiate the proceedings is submitted by the debtor, the applicant may waive the same at any time before the Bankruptcy Court issues a decision thereon or before taking any…

In accordance with conditions that provide for appropriate and adequate protection for creditors, the Bankruptcy Court may order the impleader of any natural or legal person into the proceedings stipulated in this Law if…

1. The Bankruptcy Court shall decide on the application within (10) ten days from the expiry of the periods specified for responding thereto, by issuing a decision to initiate preventive settlement, or bankruptcy proceed…

The Bankruptcy Court may, sua sponte or upon motion of the debtor, any of the creditors, the Trustee or other relevant parties, amend the temporary cessation of payment date until the date of approving the list of debts.…

1. The Bankruptcy Court shall issue its decision not to admit the application if the documents, data and information stipulated in Article (22) of this Law are not submitted, or if they are submitted incomplete without a…

1. The Bankruptcy Court may, sua sponte or upon a motion submitted thereto by the Unit, if the debtor is supervised by the regulatory authority, by the regulatory authority or by any relevant party, may decide to take an…

1. The Bankruptcy Department shall, not later than (10) ten days following the date of issuance of the Bankruptcy Court's decisions relating to application to initiate the proceedings, dismissal, inadmissibility or termi…

If the Bankruptcy Court decides to admit the application to initiate or bankruptcy proceedings, the Trustee nominated by the Unit shall be designated in the same decision, and his fees shall be estimated in accordance wi…

1. The Bankruptcy Court may, sua sponte or upon motion of the debtor or the Unit, if the debtor is supervised by a regulator authority, assign the Unit to nominate more than a Trustee and suggest the amount of their fees…

1. In all cases in which a decision is issued to appoint a Trustee after approving the list of creditors, or in cases in which the Bankruptcy Court issues a decision to replace the Trustee or appoint a new Trustee, the B…

If a legal person is appointed as a Trustee, it shall nominate one or more representatives to assume the duties of the Trustee, and the Trustee shall be responsible for its representative. In all cases, the Trustee's rep…

The Trustee appointed in accordance with the provisions of this Law may submit to the Bankruptcy Department any application to take a decision that would help him perform his mission in the appropriate manner, and the sa…

The following persons may not be appointed as Trustees: 1. Any of the creditors. 2. Debtor-related party. 3. Any person against whom a final judgment has been issued in a felony or misdemeanor of theft, embezzlement, fra…

The Trustee shall carry out his duties under the supervision of the Bankruptcy Department, and he shall follow up on the proceedings promptly and ensure that he takes all measures that provide protection for the interest…

1. In cases where the Trustee is entrusted with the management of the debtor's assets and business, the Trustee shall safeguard those funds and act on behalf of the debtor in all actions required to manage the debtor's a…

In the cases referred to in Article (43) of this Law, the Trustee may, with permission from the Bankruptcy Court issued after hearing the debtor's statements or notification thereto, accept settlement or accept arbitrati…

Once appointed to take over the management of the debtor's assets and business, the Trustee shall take the following measures: 1. Receive, review and keep the debtor's correspondence in relation to the latter's business,…

1. The Trustee shall credit any amount he receives with regard to the proceedings to a special account in the bank determined by the Bankruptcy Court, not later than (2) two working days from the date he receives that am…

1. The Trustee shall record all actions taken in connection with the management of the debtor's assets and business in the books and registers prepared for this purpose. The notation may be electronic, and the Unit, the …

1. In the event that the debtor is supervised by the regulatory authority, the debtor, the creditors and the Unit may object before the Bankruptcy Court to the Trustee's activities before they become effective. The objec…

The Trustee shall submit to the Bankruptcy Department and to the Unit, where the debtor is supervised by the regulatory authority, a report on a monthly basis or on any other date determined by the Bankruptcy Court on th…

The Trustee, the debtor, any creditor or the Unit, where the debtor is supervised by the regulatory authority, may petition the Bankruptcy Court to issue a decision determining the scope of the Trustee's powers regarding…

The Trustee shall receive his fees specified in the decision to appoint him, as well as the necessary expenses he incurs from the debtor's known property to manage the bankruptcy, and the Bankruptcy Court may release pay…

1. The Bankruptcy Court may, sua sponte or upon motion of the debtor, the creditors or the Unit, where the debtor is supervised by the regulatory authority, assign the Unit or creditors to nominate one or more controller…

1. The Bankruptcy Court may at any time, after taking the opinion of the Unit, where the debtor is supervised by the regulatory authority, decide to replace the Trustee or controller. The debtor and any creditor may also…

1. Notifications and notices made in accordance with the provisions of this Law shall be deemed effective if they are sent via e-mail or any other method agreed upon or determined by the Bankruptcy Court, the Bankruptcy …

1. The Trustee, the controller, the creditors, the Creditors' Committee and all proceeding-related parties shall be prohibited from disclosing any information, data or accounts in relation to the debtor's financial posit…

1. Subject to the provisions set forth with regard to the application for the initiation of proceedings in the Preliminary Part of this Law, the debtor may submit an application for the initiation of the preventive settl…

Subject to the provisions of Article )22( of this Law, the debtor shall attach the following attachments to the application for the initiation of the preventive settlement proceedings: 1. Data, information and documents …

1. After a decision to initiate the preventive settlement proceedings is made, the debtor shall continue to manage its business and assets as usual, and it may exercise all the activities required to conduct its business…

1. The issuance of a decision to initiate preventive settlement proceedings shall result in the suspension of claims for a period of (3) three months following the date of issuance of the decision. The Bankruptcy Court m…

The claim suspension period shall come to an end in any of the following cases: 1. The Bankruptcy Court ratifies the preventive settlement proposal. 2. Issuance of a decision by the Bankruptcy Court to terminate preventi…

1. The issuance of the decision to initiate preventive settlement proceedings shall not result in the maturity of the debts nor the cessation of the interests, and any provision to the contrary in the contracts concluded…

1. The debtor may borrow or obtain banking facilities with or without guarantee, in accordance with what is stated in the application for the initiation of proceedings or in any application submitted to the Bankruptcy De…

1. Within (10) ten days following the date of issuance of the decision to initiate preventive settlement proceedings, the debtor shall coordinate with the creditors to form a Creditors' Committee of representatives from …

The debtor shall submit to the Bankruptcy Department, within (10) ten days as of the end of the period stipulated in Article (63) of this Law, a list of debt categories, indicating the type, amount, and ranking of the de…

1. The Creditors' Committee shall, within ten (10) days from the date of its notification of the decision to form the committee, determine the issues to be assigned to the committee's representative and notify the debtor…

The preventive settlement proposal shall include the following: 1. The debtor's plan to carry out its activity. 2. A list of the names of known creditors and debtors, their electronic and physical addresses, their teleph…

1. The debtor shall file a copy of the preventive settlement proposal with the Bankruptcy Department, along with a summary of the proposal, within (3) three months following the date of issuance of the decision to initia…

The settlement proposal may be based on the debtor's assignment of part of its property in consideration of the settlement of its debts, in whole or in part, in order to pay off all debtor's debts in kind or in cash or p…

1. The debtor shall call on the creditors to approve the preventive settlement proposal, pursuant to a notice that includes the date and place of the meeting, in accordance with the procedures contained in the preventive…

1. The right to vote on the preventive settlement proposal shall be limited to ordinary creditors whose debts are finally approved. The Bankruptcy Court may authorize creditors whose debts are temporarily approved to vot…

1. The debtor shall provide a sufficient explanation for the settlement proposal items during the meetings held for the discussion of the proposal and any amendments thereto. Any of the creditors, Creditors' Committee, r…

1. The preventive settlement proposal shall be deemed approved by the creditors when it is approved by the required majority. In the event that the proposal is not approved by the such majority in the first meeting for t…

1. A report shall be draw up on the outcomes of the meeting held for voting on the preventive settlement proposal. Such report shall be signed by the present debtor and creditor, who have the right to vote, as well as th…

1. Not later than (10) ten days following the approval or rejection of the preventive settlement proposal, the debtor shall inform the Bankruptcy Department,, controller and Unit, where the debtor is supervised by the re…

Within (10) ten days following the Bankruptcy Department's receipt of the notification on approval by the creditors of the preventive settlement proposal and attachments thereof, the Bankruptcy Court shall endorse the pr…

1. The Bankruptcy Court shall issue a decision to disapprove or suspend the ratification of the preventive settlement proposal in any of the following cases: a. If the procedures of calling for the meeting or voting ther…

1. Any of the creditors, who did not vote for the approval of the preventive settlement proposal, file a grievance against the creditor's decision to approve the preventive settlement proposal, not later than (10) days f…

1. The preventive settlement proposal ratified by the Bankruptcy Court shall be effective with respect to all the creditors included, including the creditors who disapproved the proposal and those who did not attend the …

1. The debtor shall implement the preventive settlement proposal in accordance with the terms agreed upon by the creditors and ratified by the Bankruptcy Court. It shall further notify the Bankruptcy Department within (1…

1. The debtor may, at any time during the implementation of the preventive settlement proposal, serve a notice to its creditors to discuss any amendments deemed necessary to be made to the proposal. Creditors shall be no…

The Bankruptcy Court may, based on a motion submitted thereto by any of the creditors during the period following the decision to ratify the preventive settlement proposal and before the proposal is fully executed, decid…

1. The termination of the preventive settlement proceedings in accordance with Clauses (81.1, 81.2 and 81.8) of this Law shall result in the Sureties being released from the guarantee provided to implement the terms of t…

1. The Bankruptcy Court may, based on a motion submitted thereto during the period following the decision to ratify the preventive settlement proposal and before the proposal is fully implemented, decide to terminate the…

1. If the Bankruptcy Court decides that the preventive settlement proceedings be terminated, it may, based on a motion submitted thereto by the debtor, the regulatory authority or the creditors who are entitled to submit…

The actions issued by the debtor after the issuance of the decision to ratify the preventive settlement proposal shall be effective vis-à-vis the creditors. They may not request its invalidity except in accordance with t…

Terminating preventive settlement proceedings shall not oblige creditors to refund the debts they collected before the judgment or termination decision is issued, and these amounts shall be deducted from the value of the…

1. Subject to the provisions stipulated regarding the application for the initiation of proceedings in the Preliminary Part of this Law, the debtor, creditors and the regulatory authority may submit an application for th…

Subject to the provisions of Article (22) of this Law, the application for initiation of proceedings shall be accompanied by the following attachments: 1. Data, information and documents indicating that the necessary con…

1. After the issuance of the decision to initiate the proceedings, the debtor shall continue to manage its business and assets under the supervision of the Trustee, and it may carry out all the actions required for its c…

1. Within (10) ten days from the date of submitting the application, the Bankruptcy Court may, sua sponte or based on a reasoned motion submitted by the Trustee, any of the creditors or the Unit, where the debtor is supe…

If the Bankruptcy Court has appointed a temporary Trustee to manage the debtor's business and assets, the temporary Trustee shall cease to manage the debtor's assets and business and hand them over to the debtor within (…

The issuance of a decision to initiate proceedings result in the suspension of claims from the day following the date of issuance of this decision until the date of ratification of the plan. The Bankruptcy Department sha…

The claims suspension period shall end in any of the following cases: 1. The Bankruptcy Court approves the plan. 2. The Bankruptcy Court issues a decision to terminate the proceedings.

The provisions stipulated in Part I of this Law regarding preventive settlement shall apply to contracts, new financing and the Creditors' Committee.

1. The Bankruptcy Department shall notify the Trustee of the decision issued to appoint him within (10) ten days from the date of its issuance, and it shall provide him with all the information it has about the debtor. T…

The Trustee shall create a register in which he records the data of all the creditors of the debtor available thereto and shall submit an updated copy of the entries of such register to the Bankruptcy Department. He shal…

1. The Trustee may request any data or information in relation to the debtor's property or business from any person who hold the possession of such information. Any person, who has information about the debtor's property…

1. All creditors, even if their debts are not payable or guaranteed by a mortgage or lien or are not established by final provisions, shall hand over to the Trustee, within the time limit specified in the notice addresse…

The creditor who received an advance payment on account of its claim from the debtor's Sureties or a third party shall deduct the amounts received thereby from any claim it submits to the Trustee, and any of the debtor's…

1. The Trustee shall scrutinize the debts within (30) thirty days from the expiration date of the period specified in Article (95.1.B) of this Law. In this regard, he may seek assistance from the Unit, where the debtor i…