Kuwait: Draft Bankruptcy Law Being Referred to Parliament
The Kuwaiti Government has referred a draft bankruptcy law to Parliament to consider. The aim is to improve the business environment in the country, address bankruptcy cases and preserve commercial companies. It also aims to maximise the returns of creditors, collect as much money for them as possible and create a legal system which attracts local and foreign investment. In addition, it aims to keep commercial companies operating and provide systems and mechanisms to enable this. This includes allowing preventive settlement and restructuring and protecting the owners of small and medium enterprises; by reducing the periods stipulated by the law. Finally, it will abolish the role of expert management in the bankruptcy process and replace it with a bankruptcy committee. Those on the committee will have financial expertise and be responsible for supervising the procedures for restructuring, bankruptcy and reconciliation regarding debts.