Bankruptcy law draft ready

A DRAFT law concerning bankruptcy has been completed, it was revealed.

Industry, Commerce and Tourism Minister Zayed Al Zayani said the new bill aims to replace the 1987 Bankruptcy and Composition Law.

“We have finished drafting a new law on bankruptcy,” he said.

“Bahrain does not have a comprehensive law and (the existing one) is outdated.”

He said the new law aimed to provide a “safety net” to business owners.

“Hopefully it will be adopted soon as it will have a huge impact on our economy by giving protection to those who are going through problems today and provide security to those who want to start new businesses,” he explained.

The ministry studied similar laws implemented in Singapore, UK, US and neighbouring countries to provide more flexibility to business owners in capital restructuring.

“We came up with a comprehensive draft that has the best practices from different countries,” added Mr Al Zayani.

However, he did not reveal when the draft law would be presented to the National Assembly.

Source: http://www.gdnonline.com/Details/250795/Bankruptcy-law-draft-ready