The Abu Dhabi JD rescues a company from bankruptcy

The intervention of the Abu Dhabi Commercial Court paid off. The Abu Dhabi Judicial Department was able to rescue a company from bankruptcy.

This is the second case of its kind at the regional level to be heard by the relevant courts in Abu Dhabi.

After a limited liability company specializing in public contracting fails to pay its debts due to the financial crisis, a creditor applies to initiate bankruptcy proceedings under the provisions of Chapter IV of the Bankruptcy Code.

With the aim of addressing the conditions of the companies, the follow-up activities were in accordance with the effective legal measures provided by the Federal Decree-Law No. 9 of 2016 on Bankruptcy and its amendments:

It protects borrowers' funds in a way that enhances the protection of economic activity and the investment climate.

With the help of a specialist under the supervision of the Abu Dhabi Commercial Court, the debtor company was able to pay off the debt and pay the company an estimated surplus of AED 5,400,000. It is estimated to be worth more than Dh15 million.