The new law on bankruptcy in Bahrain intends to updates rules
that regulate insolvency proceedings and that strengthen the
country's business community. Some of the changes involve the
development of a system concerning which the rehabilitation of
institutions or individuals that file for bankruptcy can take place
whenever possible. Officials hope that the legislation will remedy
the shortcoming of the existing bankruptcy law.
The new legislation also contains provisions to guarantee
"equitable distribution among creditors under the rule of
preferential, preferred and ordinary rights" in the event of a
default and ensures equal treatment of creditor claims. The aim of
the government in implementing this new legislation is to improve
impartiality and transparency as well as to improve the time frames
in which the bankruptcy process operates. Another inclusion in this
new law is the regulation of cross-border restructuring and
bankruptcy procedures which were lacking in
