- Protects companies affected by war
- Temporarily outlaws creditor action
- Offers reassurance to investors
The UAE has activated emergency bankruptcy protections for businesses financially impacted by the Iran war, temporarily preventing creditors from forcing affected companies into insolvency and giving debtors more time to restructure.
The resolution is in relation to businesses whose financial problems can be directly linked to the Iran war and which apply for court protection after February 28, when hostilities escalated.
“The government has effectively declared that the UAE is now in a period of an emergency financial crisis under the bankruptcy law,” said Katharina Schaub, counsel, restructuring and insolvency…