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.