Example of Strategy for Bankruptcy & Restructuring:
When the office is appointed to act in a bankruptcy or restructuring matter within Kuwait, the strategy is guided by the following principles:
I- Comprehensive Planning: A clear plan is developed at the outset in line with the Kuwaiti Bankruptcy Law (Law No. 71 of 2020) and related regulations.
And other relevant laws as Kuwait company law.
The Kuwaiti Income Tax law (Law No. 2 of 2008 amending provisions of Decree No. 3 of 1955 regarding Kuwaiti Income Tax) and its by-law should be examined:
The plan also covers the debtor’s financial standing, the position of creditors, and procedural obligations before the Kuwaiti courts.
II- Stage-by-Stage Progression: Each stage of the case is managed with specific objectives and deadlines. For example: – Filing for protective settlement procedures, transitioning to restructuring proceedings, If necessary, studying the advantages and the disadvantages of resorting to liquidation.
Progression follows the statutory steps provided under Kuwaiti law, ensuring compliance and efficiency.
III- Full Coverage of Procedures: The strategy encompasses all phases recognized by the law — from filing applications with the Bankruptcy Court, through the appointment of trustees and supervisors, to the execution of restructuring plans or liquidation judgments.
IV- Prioritization: Priority is given to urgent actions, such as obtaining protective measures to suspend creditor claims and preserve the debtor’s assets. Once immediate protections are secured, focus shifts to restructuring solutions, settlements with creditors, or asset distribution in liquidation.
V- Stakeholder Engagement: Active engagement with creditors, court-appointed trustees, regulatory authorities (such as the Ministry of Commerce and Industry where relevant), and other stakeholders are central to the strategy. The objective is to safeguard the client’s interests while working within the framework of Kuwaiti commercial and financial regulations.