Overview
Over the last year, BSA’s industry-leading legal advisors have been instrumental in some of the largest restructuring and insolvency cases in the region. Acting on behalf of both debtors and creditors, we find our clients solutions to their NPLs, underfunded liabilities, and other areas of financial distress, by considering all options available under the new bankruptcy law in relation to insolvency, preventative composition, bankruptcy and liquidation. Key recent transactions on behalf of both lenders as well as distressed debtors include:
- Acting on behalf of a distressed industrial conglomerate, which produces 10% of global polyethylene terephthalate output, against 20 local and international creditor banks, with a value of approximately US$800 million. This was one of the largest ever restructuring cases in the UAE. The process took over two years to complete and as a result of our work, our client has been able to avoid insolvency, continue its operations, and is expected to return to profitability post-restructuring. We also provided extensive value-added services, including representing the company and its individual officers and directors in numerous civil and criminal actions arising from the financial distress in which they were defendants, as BSA is admitted to appear in all UAE based Courts.
- Advising a high-profile bank consortium creditor committee regarding their enforcement options, resulting in the commencement of execution proceedings against a US$5 billion UAE-based entity.
- Acting as enforcement advisors and advocates on behalf of an international lenders’ consortium regarding an ongoing default in previously restructured debts against a prominent UAE based debtor, with a value of US$8 billion.
- Negotiating a settlement on behalf of one of the Abu Dhabi’s leading Real Estate Investment Trusts in relation to the restructuring of its loans and obtaining facilities with another bank at favorable terms to the borrower, whilst removing all mortgages in their property portfolio, for a value of over US$100 million.
- Advising an international conglomerate with offices throughout the GCC, as to the best options to facilitate a successful restructuring of their regional entities. Provided advice and support as to the ramifications of potential restructuring, M&A, and insolvency options – including bankruptcy – upon all company operations as well as the exposure of its officers, directors, shareholders and related parties, in view of its debt of over US$2.5 billion and a problematic shareholder structure.
Experienced lawyers for UAE bankruptcy law
The recently revitalised UAE Bankruptcy regulations were designed to encourage a ‘rescue culture’. The aim was to combat the hitherto negative connotations associated with bankruptcy in the region. The laws allow companies in financial difficulty the opportunity to reorganise their affairs in order to remain viable or, if that isn’t possible, to liquidate in an orderly fashion. It also provides relief from some of the more severe criminal penalties that had previously been in force.
Furthermore, we can also advise on the more recently issued Personal Bankruptcy Law. Following in suit of the revised UAE Bankruptcy Law, the Personal Bankruptcy Law now also offers individuals many of these same protections.
Against this fluid legal backdrop, it is imperative to secure legal representation from a law firm that fully understands this emerging area of law in the UAE.
