KUWAIT CITY, Oct 1: The Ministry of Commerce and Industry has said the new bankruptcy law approved by the National Assembly is modern and serves the economic stage, indicating that it includes more than 300 articles which are aimed at changing the organizational structure of bankruptcy and puts Kuwait in the rank of developed countries, reports Al-Rai daily.
After the new preventive settlement law was approved, the ministry said, “The rules regulating bankruptcy have become a global issue, and the law maximizes the returns of creditors and the collection of the largest amount of their money.”
The sources stated the law reorganizes the legal framework for bankruptcy provisions contained in the Commercial Law No. 68 of 1980, by introducing preventive settlement and restructuring systems that aim to save commercial enterprises, and enables the bankrupt establishments to start again to conduct business by exempting the remaining debt with regard to small and medium enterprises, as well as enabling stalled companies due to external and temporary reasons to obtain the necessary protection from creditors in order to achieve economic goals.
Regarding the most important features of the law, the ministry made it clear that it stipulated the establishment of a bankruptcy department similar to the execution department to give bankruptcy issues a kind of privacy and urgency in the implementation. It also gave the supervisory authorities such as the Central Bank and the Capital Markets Authority the necessary fl exibility to set special rules for them given the privacy of private entities to monitor them.