Bahrain: Bahrain’s new bankruptcy law
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Bankruptcy is never a good thing in business. These are difficult times and can test the patience and steadfastness of many businessmen. However, with the help of business-friendly laws and procedures designed to help, the recovery steps or whatever route they choose can be much more bearable than they normally would be.
Bahrain is the smallest of the GCC countries when you consider its economy and GDP. However, it still offers an excellent business environment as well as world-class infrastructure and has therefore become a popular business destination.
To differentiate itself and become an attractive prospect for foreigners, Bahrain has strived to ensure that its regulatory and legislative structures are as user-friendly as possible for foreign investors. More recently, he introduced a new bankruptcy law, and the hope is that it will contribute to the growth of the country’s international image and the growth of the foreign business market.
New bankruptcy law
Bahrain introduced its new bankruptcy law to attract a larger number of foreign investors. With greater security offered to these foreign companies, there will probably be a greater number of potentials who will then choose the country to set up and invest there.
The UAE and Saudi Arabia have also implemented bankruptcy laws in their systems. The system introduced in Bahrain follows US Chapter 11 insolvency law.
Under this law, in the event of bankruptcy, a business will have the opportunity to reorganize. Management will need to consider their options, which gives them time to make any difficult decisions they may be faced with and attempt to resolve the issue if possible. The hope was that this push would instill a sense of confidence in the nation and show that it is business-friendly and continually seeks improvement.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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