A draft of changes to United Arab Emirates bankruptcy law aimed at simplifying the process and letting failing companies restructure is taking longer than expected and may not be ready until the end of 2013, Reuters reported today. The draft, which has been in the works since 2009, should enable both listed and family-owned companies that get into trouble to restructure and be rescued rather than being forced to go through lengthy bankruptcy or liquidation proceedings. The OPEC member's government hopes the new rules will reassure foreign investors and help bring in more cash from overseas. Dubai's debt crisis in 2009-2010 shone a spotlight on company restructurings but existing federal bankruptcy laws - seen as opaque and complex - remain untested in UAE courts as distressed firms prefer to settle creditor claims privately. The new law, which will allow a bankrupt company to restructure its debts and assets and have a fresh start, is roughly based on French bankruptcy legislation.
