Regulatory Alerts2015-01-06
ADGM Consultation Paper No. 4 of 2015: Insolvency Regulations
The Board of Directors of the Abu Dhabi Global Market (ADGM) issued this consultation paper to invite public comment on proposed Insolvency Regulations based primarily on the UK Insolvency Act 1986. The draft regulations establish an administration process prioritizing company rescue, strictly limit administrative receivership to capital markets and project financings, and reduce reliance on floating charges to accommodate local legal norms. Additionally, the proposals introduce a Deed of Company Arrangement as an exit mechanism and provide protections for netting and financial collateral arrangements to ensure market certainty.
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