Dubai issues new financial centre insolvency law

Sheikh Mohammed bin Rashid, vice president and ruler of Dubai, has enacted a new insolvency law for companies operating in Dubai International Financial Centre (DIFC). The new law, which will come into effect on August 28, 2019, has been issued following the collapse of Dubai-based private equity firm Abraaj, which had a DIFC-regulated entity Abraaj Capital. The regulation introduces a new debtor in possession bankruptcy regime. The law also provides for a new administration process where there is evidence of mismanagement or misconduct. It also enforces the rules governing winding...