New regulations urged to fix gaps in bankruptcy law

TDT | Manama

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MPs are calling for better execution and implementation of the Restructuring and Bankruptcy Law, urging the government to issue new regulations. The proposal, supported by the Parliament’s Financial and Economic Affairs Committee, was put forward by MPs Ahmed Qarata, Abdullah Al Dhaen, Mohammed Al Rifai, Bader Al Tamimi, and Hamad Al Doy.

It addresses issues stemming from the inconsistent application and understanding of the current law. According to the MPs, the existing situation has led to unresolved business debts, numerous court cases, and negative impacts on the Kingdom’s economy. The proposed new regulations aim to ensure consistent application of the law, stabilise commercial transactions, and maintain trust among businesses.

The committee’s review, which included three meetings on November 22, 2023, March 13, 2024, and April 17, 2024, with input from legal and economic advisors, found the proposal to have merit. The report stresses the importance of addressing gaps in the law’s current implementation to foster a healthier business environment in Bahrain. The proposal will be discussed during Tuesday’s House of Representatives meeting