On 31 October 2023, Federal Law No. 51 of 2023 Promulgating the Financial and Bankruptcy Law (the Bankruptcy Law) was published in the United Arab Emirates (UAE) Official Gazette, repealing the prior federal law on bankruptcy (Federal Law No. 9 of 2016, the Prior Law) and significantly developing the bankruptcy regime in the UAE.

It is common in a corporate Chapter 11 bankruptcy to sell substantially all of a debtor’s assets. When the sale is supervised and approved by a bankruptcy court, purchasers will be protected from subsequent attacks on the sale or its process.

Many experienced business people are now familiar with the process by which their valid and successful debt collection efforts result in liability under the preference provisions of the Bankruptcy Code.