UAE: I own a struggling business. Can I delay filing for bankruptcy?

UAE: I own a struggling business. Can I delay filing for bankruptcy?

Dubai: The rise in the number of companies facing severe financial distress is an unavoidable fact in today's market, especially given the current health crisis and tightened business environment. In response, the UAE had enacted a Bankruptcy Law, which provided new avenues to remediate a situation wherein your business might need to file for insolvency. It is part of the global wave of insolvency reform referred to as the "rescue culture", in line with the practices of other international commercially prominent jurisdictions such as the US and UK. Accordingly, the law provides for a process in which the injection of new capital can be arranged, while at the same time claims based on existing debt can be both managed and mitigated, using a fixed legal process. The Bankruptcy Law was also amended in late 2020 in response to the COVID-19 pandemic to provide for various forms of enhanced debtor protection. This includes, in several cases, to suspend the need to file for insolvency, expedited procedures for claims of relief and settlement, and a deferral of bankruptcy proceedings filed by a creditor. Bankruptcy is a legal process for liquidating what property and assets a debtor owns to pay off their debts.