The new bankruptcy law of oman shall come into effect on july
1st 2020, which was until now dealt by the commercial law and
commercial companies law. The key three provisions dealt by this
new law are related to bankruptcy, restructuring and preventive
procedure.
A. Restructuring
Restructuring involves settling of the debtor's debts
through restructuring plan. This is supervised through a
restructuring committee that has experts that are empaneled by the
competent department of the ministry of commerce &
industry.
B. preventive composition
The trade debtor may apply for in situations when there is a
disruption in the debtor's financial situation, which is likely
to lead into an interruption of the payment of the debtor's
debts. This method can be sought with the aim to achieve a
settlement with creditors to avoid bankruptcy.
