A Seminar on the legal means to collect the debts of the struggling companies

In cooperation with DLA PIPER for the legal services, (NEN) Al-Wagayan Al-Awadhi, Al-Saif law firm organized a seminar under the title “Legal means to collect the debts of the struggling companies”, and this is within the framework of the legal and social role of the two firms. The goal of the seminar was to let the debtors recognize the legal and commercial dimensions to solve the economic crisis.

The seminar focused on the insolvencies (financial difficulties) caused by the struggling companies for the participants. The seminar, in which both lawyers Nader Al-Awadhi, Najeeb Al-Wagayan and a representative of DLA PIPER  talked, stressed that there were efficient means to regain the rights through referring to the judiciary at the request of the creditor.

The speeches in the seminar noted that the judiciary is the only keeper (guard) for the investors’ money. As for the commercial debts, they have a privilege by the legislator who made the court's ruling subject to rapid implementation and this is the advantage of commercial debts to other debts since they are carried out in the first instance of litigation, and then the creditor takes the legal procedures recognized by the Kuwaiti law.

Al-Awadhi clarified that resorting to the courts through the civil lawsuits aims to raise funds and obtain a court ruling that preserves the money available at the hands of the creditor so as not to be spent. 

He pointed out that the adopted legal procedures are briefed to provide performance and request provisional seizure of the personal properties before the judge of temporal issues.

The speakers at the seminar pointed out that there are lawsuits caused by the companies’ mismanagement and leads to the partner’s loss. Moreover, the economic crisis has proved that a lot of company owners and shareholders suffered loss.

For his part, Al-Wegayan pointed out that the bankruptcy of some companies has become like anthrax thrown by everyone at each other in order to avoid criminal responsibility.

He added that the climate crisis would be back again 25 years later, stressing the necessity for the shareholders in the bankrupt companies to go to the courts and file complaints against the struggling companies under the false promises received by them (the shareholders).

Legal speakers at the seminar held at the J.W. Marriott Hotel said that the draft law of strengthening the financial stability of the country would not solve the problems of bankrupt and hopeless companies, adding that the Kuwaiti companies are subjected to many legal problems and repercussions of the recent financial economic crisis.

It is worth to mention that the seminar is a monthly workshop organized by (NEN) Al-Wagayan, Al-Awadhi, Al-Saif  law firm in cooperation with its partners to discuss the latest legal issues, ant to specify the problems and find solutions.  This seminar serves as a reminder for companies not to depend on hope for solving their problems and collecting debts but to resort to the courts in to get their rights before their chances for negotiations weakens.