Question

What is the commercial bankruptcy law (in Oman) and what are its provisions

Answer 1

The new bankruptcy Law to be implemented by the Omani Government could be viewed as an effort to encourage investment by ensuring comfort to both domestic and foreign investors.The key provision of the law is that on the declaration of insolvency a government appointed expert committee either help in avoiding liquidation by restructuring the obligations or at the event of liquidation help in the process lawful and in a timely manner. The law applies to all traders i.e. an individual ,a company or an institution undertaking (runs) a commercial activity.

The main provisions of the law are, the existance and role of an expert committee,the very concept of restructuring obligations more effectively which might help in compromising with creditors,an expanded time frame to make settlements etc

A trader or a company with the approval of its share holders can appeal for restructuring if they have been countinously in the business activity for two years and not committed any fraud. It is required to submit the petition within six months after the occuarance of administrative or financial disorder.The restructuring expert committee wil prepare a report and a feasible restructuring plan that can be implemented within five years.And if the creditors reject the plan the settlement is reported to the court and the decision of the court will be final.