[company removed] can’t pay suppliers—can I file for restructuring to stop cheques bouncing?

Thank you for reaching out. In general, UAE law does provide mechanisms that may help a company in financial distress explore restructuring options and potentially pause certain enforcement actions while discussions with creditors take place. The exact steps and documents depend on your company’s situation, structure, and the nature of the outstanding obligations.

Yes, you may be able to apply for financial restructuring or preventive composition under UAE Bankruptcy Law, which in some cases can help pause creditor enforcement while you negotiate repayment with creditors. However, this must be filed through the court and requires financial documents, creditor lists, and company records. It is important to act before cheques bounce to reduce legal risks such as execution cases or travel bans. You should speak with a lawyer immediately to review your situation and restructuring eligibility. Reach out to us for a free 15-minute consultation (T&C applied).

Yes, in the UAE you may apply for company restructuring under the UAE Bankruptcy Law, which can help protect your company if you are unable to pay suppliers and have post-dated cheques due.

If the court accepts a Preventive Composition or Restructuring application, the court can order a temporary suspension of legal actions and enforcement, which may help prevent cheque execution cases while you negotiate with creditors and restructure debts.

What you typically need:
- Trade license
- Memorandum of Association
- Financial statements
- List of assets and liabilities
- List of creditors and amounts owed
- Cash flow statement
- Explanation of financial difficulties
- Proposed restructuring/repayment plan

Timing is very important — the restructuring application should be filed before cheque cases and enforcement actions escalate.

You should consult a lawyer immediately to review your financial position and prepare the restructuring filing properly.

You may contact Farahat & Co for a free 15-minute consultation to discuss your restructuring and legal options.