Govt okays bill on restructuring, bankruptcy

The Egyptian government has okayed a bill on restructuring and bankruptcy meant to give insolvent projects solutions outside courtrooms. 

Meeting under Prime Minister Sherif Ismail earlier Wednesday, the Cabinet approved the bill under which a mediation system will be established with the aim to decrease the number of lawsuits filed in bankruptcy cases, said Justice Minister Hossam Abdel Rehim.

The bill is about easing post-bankruptcy measures, Abdel Rehim noted. 

A bankruptcy department should be established at economic courts in line with the bill, the minister said.

That department should follow up mediation measures, where restructuring and reconciliation requests are concerned, he explained.

The bill puts an end to imprisonment in bankruptcy cases and states that fines would be the only penalty, Abdel Rehim further said. 

Investment Minister Dalia Khorshed said the bill is part of a bunch of incentives meant to encourage investors.