Wednesday March 7th, 2018

A New Bankruptcy Law

On 19 February 2018, the Law No. 11 of 2018 for Restructuring, Bankruptcy and Bankruptcy-avoiding Settlement was issued (generally referred to as the “Bankruptcy Law”). The Law is considered one of the most important pieces of economic legislation to come out lately. It adds novel concepts and introduces a new approach to dealing with persons and entities who are facing financial or administrative trouble. For instance, it introduces for the first time in Egyptian bankruptcy legislation the concepts of mediation and restructuring, giving both debtors and creditors a higher degree of flexibility in dealing with debts. It also revokes some harsh consequences of bankruptcy that were part of previous legislation, cancelling the authority of the bankruptcy judge to place the debtor in custody. Prior to the issuance of the present Law, Code of Commerce No. 17 of 1999 (Articles 550 to 772) constituted the main governing provisions for bankruptcy. This is in addition to a few relevant articles under the Penal and Civil Codes. The new Bankruptcy Law No. 11 of 2018 has repealed bankruptcy related provisions in the Code of Commerce, as well as any rules that contradict the new provisions. The Law states that its executive regulations and other related implementing decrees are to be issued within three months from the date of its coming to effect (determined as thirty days following the Law’s publication); i.e. prior to 21 June 2018.

You can read a detailed analysis of the new law through this link.

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