"Abu Dhabi Judicial" succeeds in removing a company from the risk of declaring bankruptcy
The Abu Dhabi Judicial Department managed to get a company out of the danger of declaring bankruptcy, after the success of the restructuring process that it underwent before the Bankruptcy Department of the Abu Dhabi Commercial Court, in accordance with the effective legal procedures provided by Federal Decree-Law No. 9 of 2016 regarding bankruptcy and its amendments, with the aim of addressing the conditions of companies. and the protection of creditors’ funds, in a manner that enhances the protection of the economic activity and investment climate of the state.
The details of the second incident of its kind in the region, which are being considered by the specialized courts in Abu Dhabi, are due to a creditor applying to open bankruptcy declaration procedures in accordance with the provisions of Chapter Four of the Bankruptcy Law, as a result of the failure of a limited liability company specialized in the field of general contracting to pay its debts. And stopped paying it, as a result of the turmoil of her financial position.
During the course of the procedures, a group of other creditors submitted their claim for debts with a total value of 76 million 104 thousand and 221 dirhams, and a draft restructuring plan was prepared, which was voted in by 71.54% of the creditors, with a debt value of 71.89% of the total debt, so that the debtor company with the assistance of an expert Specialized and under the supervision of the Abu Dhabi Commercial Court, from paying obligations and disbursing a surplus amount to the company estimated at 5 million and 400,000 dirhams, while maintaining its in-kind assets with an estimated value of about 15 million and 168,000 dirhams.
Restructuring is the most effective means provided by Federal Decree-Law No. 9 of 2016 regarding bankruptcy and its amendments, as it allows a forum for dialogue between the debtor and the group of creditors, with the assistance of an expert and under the supervision of the competent court, to discuss ways to face challenges, according to dynamic, organized and interactive techniques aimed at directing the dialogue in the direction of Constructive contributes to finding the optimal collective solution for the payment of obligations in a manner that achieves the common interests of all parties.
It should be noted that the restructuring procedures begin with limiting the claims to the debtor, determining his money, and studying the reasons for his failure to pay his debts. When the plan is not imposed on the creditors unless the majority of them agree in terms of their number and the value of their debts.
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