IslamicFinance.de

Oman’s Ministry of Commerce and Industry said that the Sultanate’s new bankruptcy and insolvency law will come into effect from July 2020 and it will help companies to get out of the financial turmoil. The bankruptcy law allows the debtor to request a protective settlement if their financial business is disturbed which would lead to suspension of payment of debts. Heirs to the business may apply for protective reconciliation if they decide to continue trading. The debtor continues to manage his funds during the implementation phase of the restructuring plan and remains responsible for any obligations arising prior to or after the date of the adoption of the restructuring plan. Similarly, the bankruptcy law grants the right of every trader to file for bankruptcy, in case they stop paying their commercial debts following the disruption of business activities. A bankruptcy case shall not arise except by a court ruling.