Insolvency Reform On Track in Bahrain

One of the principal insolvency law drafters at Bahrain’s Ministry of Industry, Commerce and Tourism (MOICT) and a member of the Bahraini Parliament’s Finance Committee, discussed Bahrain’s draft law with CLDP.  The officials confirmed that the draft insolvency law, which was recently approved by the Bahraini Cabinet, introduces a reorganization process for failing businesses and includes streamlined procedures for smaller businesses.  CLDP has been working with MOICT, private sector stakeholders and other government institutions to ensure that its provisions would be consistent with international best practices, while also addressing the specific needs and challenges in the Bahraini business environment.  If passed, the draft law will help to increase creditor recovery rates, to encourage entrepreneurship and to prevent the loss of economically significant companies. The bill is awaiting final approval by Bahrain’s parliament before going to the king for signature.