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English news

13-Mar-2017

Draft of bankruptcy act revealed

The State Council expects to conclude its review of the draft bankruptcy act within a month. The act aims to protect failed companies and individuals from debtors prison and criminal court proceedings. The main highlights include: Economic courts are the only authority allowed to look into bankruptcy cases and a bankruptcy judge’s ruling will also be considered final and cannot be appealed. A request for bankruptcy can be filed in person by the debtor, by the creditor, or by order of the Prosecutor General’s Office, with a statute of limitations of up to one-year after a person’s death or after retirement. Companies with paid-in capital above EGP1mn can lodge a request to restructure or choose to negotiate a settlement in lieu of declaring bankruptcy before bankruptcy court proceedings begin or a verdict is issued by an economic court in a bankruptcy case. The law will be applied retroactively to ongoing cases. 

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