Nader Al Awadhi, Senior Partner at GLA & Company, has achieved a significant legal victory on behalf of First Investment Company (“FIC”), a publicly traded company on the Kuwait stock exchange. The triumph occurred in front of the Kuwait Court Bankruptcy Department, where Al Awadhi successfully advocated for the acceptance of a preventive settlement application, representing a groundbreaking development under the new Bankruptcy Law enacted in 2020.
In a strategic move to safeguard FIC’s integrity, asset value, and overall interests, Nader Al Awadhi, representing FIC, initiated the filing of a preventive settlement application with the Bankruptcy Department. The primary objective was to halt any potential execution actions by creditors against the company. The court was persuaded by the compelling arguments presented and concurred by agreeing to suspend any execution proceedings initiated by creditors. This crucial decision grants FIC the opportunity to continue its operations, remain financially viable, and pursue a preventive settlement with its creditors.
This legal milestone carries immense significance, as it marks the very first instance, since the Bankruptcy Law’s enactment in 2020, where an application for a preventive settlement has been successfully approved by the court.