The Dubai courts. ARCHIVE

A Dubai businessman has been declared bankrupt after defaulting on debts amounting to Dh183 million, with the court ordering the preservation and liquidation of his assets to settle outstanding liabilities with creditors. According to case documents, the debtor filed for bankruptcy in March 2024, citing an inability to pay his debts for over 30 working days due to severe financial distress. The court reviewed the request and appointed a financial expert to assess his financial situation. After examining the expert’s report, the court sought the opinion of the Public Prosecution, which supported the bankruptcy proceedings. In October 2024, the court officially declared the debtor insolvent, paving the way for the sale and distribution of his assets among creditors. The case involved claims from three financial institutions and banks, with the total outstanding debt reaching Dh183,279,132. During the court sessions, representatives of the creditors opposed the bankruptcy claim, arguing that the debtor had failed to present sufficient documentation to support his case. They insisted that the legal requirements for bankruptcy were not met. However, the court ruled in favor of the debtor’s petition and proceeded with liquidation measures. Dr. Alaa Nasr, the debtor’s legal representative, confirmed the court's decision. "The court has declared my client bankrupt and ordered the immediate commencement of asset liquidation to pay off the creditors," he said. As part of the ruling, the court imposed restrictions on the debtor’s financial activities. "He has been banned from conducting any financial transactions, disposing of his assets, or withdrawing from his bank accounts. Additionally, all his financial documents must be handed over to the bankruptcy trustee within five days," Nasr explained. The ruling also froze all bank accounts, real estate holdings, stocks, bonds, and vehicles registered under his name. ICA/Expat Media
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