The Kuwaiti National Assembly (Parliament) has passed a bankruptcy law, which is expected to help troubled companies, grant them legal protection, and provide them with various options before declaring bankruptcy.
In this context, Minister of Trade and Industry Khaled Al-Roudhan pointed out that “the bankruptcy law will contribute to strengthening the national economy,” explaining that “the new law created two main ways out for troubled companies or defaulting traders, the first of which is a preventive settlement by agreement of the creditor and debtor, and the second is to find a plan to restructuring before declaring bankruptcy, and even in case of bankruptcy, the new law only punishes the bankrupt.
According to the old law issued 40 years ago, stopping the payment of the debt means declaring bankruptcy, which requires the punishment of the bankrupt with imprisonment, travel bans and deprivation of his political rights, while the current law that stopped payment is not considered a criminal except in the case of fraud.
Many companies and businessmen have been affected during the past few months due to the Corona pandemic and the general isolation measures that was taken in the country.
Source (Al-Rai Newspaper-Kuwait, Edited)
