Bankruptcy / Insolvency

Bankruptcy laws were made for the people whose finances are collapsed and to give a fresh start all over.

We, Xtreme Solutions have got our legal firms to do bankruptcy in GCC countries and in India. To have an idea of bankruptcy, please go throgh the following

Bankruptcy:

It’s a legal process for the people, firm or other entities who are not able to repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. Our team of legal consultant will high lighten, how bankruptcies work, support in filling bankruptcy, company insolvency.

The Law in UAE, recently on Bankruptcy has seen a change, to amicably and legally solve the cases, and it is also said to be a game-changer, bringing major changes which helps the business impacts.

In order to benefit from the new law, we at  Xtreme solutions,  helps our client in filing the bankruptcy process, and adapt as per the legislative changes in accordance with the existence law.

It is found that many companies can no longer support itself or its debt, in these scenario, the company can file bankruptcy in accordance with law permitted.

A relief to the Managers, directors, and owners of the company facing financial issues can work towards the saving their reputation and the firm.

Our team at Xtreme solutions   professionally with minimum distress to owners and concern will provide expertise consultancy to overcome the same.

The UAE government has issued a new Bankruptcy law. Law 9 of 2016 was published in the Official Gazette on 29 September 2016 and comes into force on 29 December 2016.  It aims to streamline and modernize the bankruptcy procedures which are available for UAE companies onshore in line with international best practice, 

UAE Bankruptcy law, the challenges raised in Covid 19 crisis are enormous, as a result the business hurdles across the region has direct impact due to covid-19 pandemics.

The firms are forced to carry out restructuring, closure of business whole over the world. 

The Recommendations to the companies in distress.

• The Directors or the concern should be aware of the risk involved in taking any action. Is it feasible to continue in the trade to seek a chance or file for bankruptcy
• If so, the companies should not wait for further insolvent status, to avoid legal obstacles.
• Companies should prepare robust financial formalities and reporting in place to finalize that they are technically insolvent.
• Companies should not have breached any financial covenant, under any loan documentation. 

Two Key court driven Procedures in Bankruptcy.

• Preventive composition 
• Bankruptcy (it’s a formal rescue procedure and insolvent liquidation).

Preventive Composition:-

The Legislative framework provides for the use of protective compositions or the arrangement made between the debtors and the creditors.

Bankruptcy 

Under the  Bankruptcy law, this are split in two.

• Formal restructuring 
• Insolvent liquidation.