Kuwait’s plans for a new insolvency
law, designed to help rehabilitate struggling businesses, have
been opposed by local banks.
The idea is to bring its insolvency legislation
more in line with Chapter 11 of the US Bankruptcy Code; the
global restructuring benchmark which allows failing businesses
to continue trading and restructure under court protection,
rather than be liquidated.
It also provides additional tools for debtors, such
as access to financing on favourable terms provided they give
new lenders first priority on the business’s
"The banks are not happy with the entire draft, on the basis
that it is a word-for-word imitation of Chapter 11," said Al
Tamimi's Ayman Salem, who has...