From March 14-17, CLDP organized a workshop in Singapore for an interagency delegation of Bahraini officials to develop a new legal framework for bankruptcy. Bahrain does not currently allow for company reorganization and limits the role of creditors in the liquidation process.  By developing a new bankruptcy framework, Bahrain is seeking to provide a more efficient mechanism for creditors to maximize their recoveries and for debtors to potentially salvage their businesses. This will ultimately increase the availability of credit in the market and stimulate economic growth, creating new opportunities for U.S. exporters. At a time of low oil and gas prices, Gulf countries depend on the emergence of a diversified small and medium enterprise sector. Modern bankruptcy laws are a key condition of such emergence.

The audience included lawyers from Bahrain’s Ministry of Industry, Commerce and Tourism in addition to a member of Bahrain’s Shura Council--the upper house of Parliament, legal advisers from both houses of Parliament, and representatives of the Central Bank and the Economic Development Board. The workshop was led by a U.S. Bankruptcy Judge from Puerto Rico and a senior partner from a U.S. law firm and featured presentations by bankruptcy professionals, judges, and accountants based in in Singapore. Singapore is known globally for its robust bankruptcy procedures which have resulted in one of the world’s highest recovery rates for creditors. As a result of the workshop, the Bahrain delegation has finalized a timeline for the completion of the first draft of the law and developed a framework that it will present to the private sector and other stakeholders for comments. The costs of the program were co-financed by the Government of Bahrain.