Kuwait Court of Cassation principle number 1857

An application for a composition to avert bankruptcy submitted by the debtor or the Public Investment Authority. It must initially be presented before the division of the Court of First Instance designated to declare the bankruptcy of clients subject to its provisions. - An application for a composition to avert bankruptcy pursuant to Law 41 of 1993. Its subjection to the procedures and provisions prescribed by the legislature by way of exception to the procedures and provisions contained in the Commercial Code. Hearing the statements of creditors wishing to be heard and requiring the consent of a quarter of those holding half the debts as a condition for the court’s ratification of the composition. Among the excepted procedures. Its effect. These creditors must be joined as parties in order to rule on continuing the declaration of bankruptcy or approving the composition to avert bankruptcy. Articles 14, 17 of the aforementioned law.