YFLG Leads the Way: Pioneering Approval for Insurance Company Restructuring in Kuwait under Bankruptcy Law 71/2020

 

YFLG has achieved a significant milestone by becoming the first law firm to obtain approval from the Bankruptcy Authority for the restructuring request of a prominent insurance company in Kuwait, following the enactment of Law 71/2020. YFLG team, led by Abdullah Al Sahw, Head of Insurance alongside Khalifah Al Yaqout, Managing Partner and Dr Hamed Al Kandary, Senior Associate devised a restructuring strategy, meticulously crafted in accordance with the provisions of Law 71/2020. This plan was then submitted and reviewed by both the Bankruptcy Administration and the Bankruptcy Committee within the prescribed legal timelines outlined in Bankruptcy Law No. 71 of 2020.

The collaborative efforts and dedication of the Bankruptcy Administration and its committee in formulating a strong implementation framework for the new bankruptcy law that aligns with its objectives and the envisioned economic role, paved the way for our work.

Notably, the Bankruptcy Law No. 71 of 2020 introduces innovative procedures absent in previous legislation. It embraces a debtor-centric approach, diverging from punitive measures traditionally associated with bankrupt entities. The law prioritizes safeguarding the debtor while striving to maintain business continuity without compromising the rights of creditors.

Introducing novel procedures absent in previous legislation, such as preventive settlement and judicial restructuring, the law empowers debtors to take proactive steps in case of payment interruptions or impending insolvency. These measures, in accordance with modern legal standards, contribute to fostering a conducive commercial environment in alignment with Kuwait Vision 2035’s ambition of positioning Kuwait as a global financial center.

Furthermore, the law streamlines litigation processes by restricting appeals to two instances, rendering judgments from the Appeals Court final and unappealable. It also establishes a specialized bankruptcy court, alongside the Bankruptcy Administration and the Bankruptcy Committee, with the aim of expediting proceedings by entrusting bankruptcy matters to specialized entities.

Additionally, the law introduces a dedicated section addressing bankruptcies of small and medium-sized enterprises, akin to similar provisions in English and Italian laws, thus simplifying procedures compared to those governing larger entities under the original legislation.

 

This success solidifies YFLG expertise in the corporate and insurance sector, enriching our portfolio with yet another noteworthy case. We look forward to continuing to support our clients in their legal endeavors as Kuwait continues its journey towards growth and development.

YFLG Leads the Way: Pioneering Approval for Insurance Company Restructuring in Kuwait under Bankruptcy Law 71/2020   YFLG has achieved a significant milestone by becoming the first law firm to obtain approval from the Bankruptcy Authority for the restructuring request of a prominent insurance company in Kuwait, following the enactment of Law 71/2020. YFLG team, […]