Kuwait's insolvency regime was rebuilt by the Bankruptcy Law, Law No. 71 of 2020, which replaced a framework directed almost entirely at liquidation, removed the automatic criminal consequence of a failure to pay where there is no fraud, and created a specialised Bankruptcy Court. The law offers three routes: preventive settlement, restructuring under the supervision of the court, and bankruptcy liquidation. Which of them is available depends largely on how early the debtor moves.
For debtors, we advise on that timing question first, then prepare the application, the statement of financial position and the plan that supports it, and appear before the Bankruptcy Administration and the Bankruptcy Court. We negotiate with banks and trade creditors, advise on the exposure of directors and managers in the period preceding a declaration, and act on applications for discharge and rehabilitation. Where the company is solvent, we conduct voluntary liquidation under the Companies Law instead.
For creditors, we file and prove claims, act on the creditors' committee, challenge plans that do not bear examination, and advise on the treatment of security, set-off and retention of title once proceedings have commenced.