My Dubai trading company can’t pay suppliers—can we restructure debts without liquidation?

Thank you for your inquiry.

Your situation requires a detailed legal assessment to determine the most suitable restructuring option under UAE law and to protect you from potential creditor actions.

We will review your case and advise you on the best legal strategy.

AlGaber Legal Consultancy

Since you have confirmed orders, you aren't "bankrupt" in the traditional sense—you are just facing a liquidity gap. The 2023 UAE Bankruptcy Law is actually designed to keep businesses like yours running, rather than shutting them down.

Your Two Main Routes - The "Preventive" Route: Best if you are just starting to fall behind (less than 60 days). You stay in the driver's seat, propose a plan to creditors, and need a 2/3 majority vote to pass it.

The "Restructuring" Route: If the debt is deeper, the court brings in a Trustee. Crucially, this opens the door for "New Money" (Interim Financing). Because you have orders in hand, you can get priority loans to fulfill them and jumpstart your cash flow.

The Legal "Shield" The moment the court accepts your application, a Moratorium kicks in. This is a legal "pause button" that:

Stops suppliers from filing new lawsuits.
Prevents landlords from evicting you.
Keeps your bank accounts from being frozen. It lasts for at least 3 months, giving you the breathing room to negotiate.

Avoiding the "Danger Zone" The 60-Day Clock: Try to file within 60 days of stopping payments. Waiting longer increases the risk of being held personally liable for "wrongful trading."

No "Favorites": Stop picking and choosing which suppliers to pay. Paying one friend or "loud" supplier over others can be flagged as a "preferential payment" and reversed by a judge later.

We would review and give you the best option for this.