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Ahram Online: Egypt's first bankruptcy law approved in House plenary session

The House had given preliminary approval to the law earlier this month.
30.01.18 | Interesting article at Ahram Online

Egypt’s House of Representatives gave its final approval to a new bankruptcy law on Sunday, in a plenary session attended by Investment and International Cooperation Minister Sahar Nasr.

The law’s promulgation is a credit positive for banks in Egypt, Moody’s said last week.

The law, which had been preliminary approved by the House on 9 January, abolishes prison sentences in bankruptcy cases and allows companies to restructure, easing post-bankruptcy procedures.

The 262-article legislation also allows for debt reconciliation that protects from bankruptcy in case.

Previously, bankruptcy cases have been referred to courts on a case-by-case basis.

A division for “bankruptcy management” will be created within each economic court to be tasked with receiving requests for restructuring, reconciliation to protect from bankruptcy, bankruptcy, and managing mediation procedures, as per the law.