The Hedge Fund Law Report

The definitive source of actionable intelligence on hedge fund law and regulation

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By Topic: Dubai

  • From Vol. 2 No.51 (Dec. 23, 2009)

    Creditors’ Rights in the United Arab Emirates

    The recent announcement by the government of Dubai that it would be seeking a stand-still on debt repayments by Dubai World and its subsidiary Nakheel PJSC has sent shock waves around the globe and raises questions regarding the rights of creditors in the United Arab Emirates (UAE).  In a guest article, Paul de Cordova, Dr. Sabine Konrad, Tony Griffiths and Jeffrey Rich, all partners at K&L Gates, highlight some key features of UAE federal insolvency law that may be relevant to hedge funds and others who have dealings with debtors in the UAE.  In particular, the K&L Gates partners address questions including: What are the insolvency laws in Dubai?  What constitutes bankruptcy under the insolvency laws?  Who is subject to the insolvency laws?  Who can commence bankruptcy proceedings?  Can a creditor sue the bankrupt business?  How are creditors ranked in insolvency?  Can a trader seek protection from its creditors?  Can transactions be set aside in bankruptcy proceedings?  And could the government be responsible for the debts of its controlled entities?

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