Previous Page
JANUARY 2013
Legal Focus
65
The global financial crisis left many companies with shrinking asset values and considerable debt with little or no chance of repayment. Market losses over the last year or so dampened spirits regarding the expectations of recovery, lowering business confidence globally and enhancing the risk of falling back into recession.
T
he restructuring and insolvency market has undergone considerable change and development over recent years
and according to a recent report, the global financial crisis has significantly contributed to an increase in insolvency work, keeping bankruptcy lawyers across the world very busy. Insolvency is viewed as the least favourable outcome, and creditors and stakeholders are increasingly turning to restructuring strategies in an effort to avoid becoming insolvent, preferring options that offer greater value return potential.
In the United Arab Emirates in particular, this practice area has faced increasing uncertainty over the last few years. To
address this, a new insolvency law has been on the horizon since 2009 which aims to tackle the problems faced by the current regulations. The new law will en- able both listed and family-owned com- panies
in
the region to be rescued rather than being subject to lengthy bankruptcy or liquidation proceedings, a process that can take over five years to complete.
To examine this subject further, and look at the effects the new insolvency law will have on the sector, over the next few pages Lawyer Monthly looks at the world of Insolvency and Restructuring across the globe, focusing on the trends occurring and the legal issues that surround the practice area. LM