MENA: CLDP Trains Judges to Effectively Implement New Bankruptcy Laws

March 31, 2019 - April 3, 2019

On March 31 and April 3, in Singapore, CLDP organized trainings for judges from Bahrain, Kuwait, Saudi Arabia, and Tunisia on the role of courts in managing restructuring and liquidation procedures. The trainings focused specifically on court administration, cross-border judicial cooperation and ensuring compliance with bankruptcy procedures. Since 2016, Bahrain, Saudi Arabia and Tunisia have passed new bankruptcy laws, which all include modern restructuring mechanisms. In Bahrain and Saudi Arabia, prior to the enactment of these laws, bankruptcy was synonymous with liquidation and courts were not used as a venue to rescue companies or to prevent their failure. CLDP assisted in developing these new statutes and is now conducting a multi-phase program focused on the implementation of these mechanisms, with a specific concentration on judicial capacity building. The trainings in Singapore this week have been led by senior U.S. bankruptcy judges from the Southern District of New York. Trainings also included presentations by World Bank and private sector experts on the impact of restructurings and judicial decision-making on the credit market and the larger economic outlook of a country. The trainings emphasized the importance of transparency, consistency and predictability in the management of bankruptcies to maximize value and build confidence in the bankruptcy process.