A FRESH START FOR CORPORATE WORLD

4-point strategy The new insolvency and financial rehabilitation law came into force in the last few days of 2016 and introduced a number of interesting features and improvements in the law. Primarily these include the following processes:

1. A framework for the financial restructuring of financial institutions

2. A ‘light touch’ rehabilitation process for solvent debtors facing financial difficulties — the preventative composition

3. A more substantial rehabilitation process for insolvent debtors — the restructuring scheme 4. An end-of-the-line insolvent liquidation process The new insolvency law is applicable to > Commercial companies > Decree companies that have opted-in > Traders (including individuals) > Free Zone companies, not subject to any free zone insolvency laws > Other civil companies and sole establishments