Tue. Jun 25th, 2024
“Al-Khaleej” Makes History by Declaring Bankruptcy for Debtor Owing 337 Million Dirhams

The Dubai Commercial Court of Appeal recently declared bankruptcy for a debtor who owed 337 million dirhams. The court found that the debtor was unable to settle his debts, leading to the seizure and distribution of all his property to creditors. The debtor had requested the opening of bankruptcy procedures in April 2023 due to financial instability and an inability to pay debts for 30 working days.

In November 2023, after evaluating the debtor’s financial situation, the court accepted the request to open bankruptcy proceedings. However, two bank agents objected to the case, stating that necessary data and documents were incomplete. Despite this objection, the court of first instance ruled in favor of declaring the debtor bankrupt and initiating sale and liquidation procedures while restricting him from managing his finances.

The decision was then appealed by two banks who argued that insufficient information should not have led to the declaration of bankruptcy. The court considered their appeal but upheld its decision based on evidence presented including an expert report which confirmed that the debtor was unable to continue business activities and was not willing to pay debts.

Finally, it was decided that all assets belonging to the debtor would be seized and distributed among creditors following legal procedures outlined in Bankruptcy Law.

By Aiden Nguyen

As a content writer at newscholarly.com, I delve into the realms of storytelling with the power of words. With a knack for research and a passion for crafting compelling narratives, I strive to bring forth engaging and informative articles for our readers. From decoding complex concepts to unraveling current events, I aim to captivate and educate through the art of writing. Join me on this journey as we explore the ever-evolving landscape of news and knowledge together.

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