Sheikh Khalifa, the President of UAE, issued the long awaited new federal bankruptcy law by decree. The law, which contains elements of bankruptcy protection laws from jurisdictions including France, Germany and the Netherlands, provides, for the first time a comprehensive legal framework to help distressed companies avoid bankruptcy and liquidation. Under the terms of the federal constitution, the new law will come into effect three months from its publication in the country’s official legal gazette. A senior official at the Ministry of Finance, who asked to remain anonymous, said that the new law had already been published in the gazette, and would come into effect in late December or early January. The new law contains provisions to safeguard the rights of both creditors and debtors in insolvency situations, including measures that prioritise secured creditor rights and enable companies to restructure without unanimous creditor approval. (The National)