Dubai Debtor Declared Bankrupt: 337 Million Dirhams Seized and Distributed Amid Legal Dispute

“Al-Khaleej” Makes History by Declaring Bankruptcy for Debtor Owing 337 Million Dirhams

In November 2023, the Dubai Commercial Court of Appeal upheld the declaration of bankruptcy of a debtor who owed 337 million dirhams. The debtor had requested bankruptcy proceedings in April 2023 due to financial instability and inability to pay debts for 30 working days. Despite objections from two bank agents who claimed that necessary data and documents were incomplete, the court of first instance ruled to declare the debtor bankrupt and initiate sale and liquidation procedures.

The bankruptcy trustee initiated legal procedures and listed three creditors, including banks within the state, with a total amount of 337 million dirhams. Two bank agents objected to the case, stating that necessary data and documents were incomplete. However, the court considered their appeal and upheld the decision to declare the debtor bankrupt based on evidence presented, including an expert report.

The court found that the debtor was unable to continue business activities and was not willing to pay debts, leading to the declaration of bankruptcy. As a result, all property belonging to the debtor was seized and distributed among creditors according to legal procedures outlined in Bankruptcy Law.

In November 2023, the Dubai Commercial Court of Appeal upheld the declaration of bankruptcy of a debtor who owed 337 million dirhams. The debtor had requested bankruptcy proceedings in April 2023 due to financial instability and inability to pay debts for 30 working days. Despite objections from two bank agents who claimed that necessary data…

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