Posts Tagged ‘creditor’

Rules of Bankruptcy

The Dubai Cassation Court has issued a principle stating that failure to pay one commercial debt is sufficient to declare a company bankrupt.

The law also allows the creditor of a limited liability company to ask the court to declare a company bankrupt if it fails to pay a mature debt.  The court has based the principle on the Commercial Transactions Law, which states that to declare a company bankrupt, failing to pay a number of commercial loans is not the provision, but failing to pay only one debt is sufficient as it implies a shaky financial status.

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