New Insolvency Law for the Dubai International Financial Centre ("DIFC") Issued

On 13 June 2019, the much anticipated DIFC Insolvency Law No. 1 of 2019 and associated DIFC Insolvency Regulations 2019 (collectively the “2019 DIFC Insolvency Law”), came into full force and effect, replacing the DIFC Insolvency Law No. 3 of 2009, JD Supra reported. By way of context, the 2019 DIFC Insolvency Law applies only to entities registered and operating within the DIFC. The 2019 DIFC Insolvency Law aims to balance the needs of all stakeholders in the context of insolvency related situations in DIFC, and in doing so facilitate a more efficient and effective restructuring regime. Key changes introduced by the 2019 DIFC Insolvency Law include: the introduction of a debtor in possession procedure known as rehabilitation; the introduction of a procedure that allows the management of a company to be replaced by a court appointed administrator where there has been mismanagement of the company; and the incorporation of the UNCITRAL Model Law on Cross-Border Insolvency. Read more