Towards a New Bankruptcy Regime for Oman: Lessons Taken from the Experience of both England and the US

Abstract

The main aims of this thesis are to assess the efficiency of the current bankruptcy system in Oman and to offer specific proposals for bankruptcy reform to be adopted by the Omani legislator. Where appropriate, in proposing solutions for various issues lessons will be taken from the experience of both England and the US. This thesis consists of six chapters. The first chapter is a general introduction to the thesis which outlines the structure and scope of the study. Chapter Two critically explores the main theories underpinning bankruptcy law across the world. The aim of this exploration is to provide a general understanding of the policies underpinning bankruptcy laws and to establish the view of this thesis. Chapter Three discusses the experience of England and the US by identifying the main differences and similarities between bankruptcy proceedings in these jurisdictions; such discussion is necessary as a basis for determining the possibility of taking lessons from these developed bankruptcy regimes. Chapter Four provides a critical analysis of the current bankruptcy regime in Oman and outlines the key features of this regime. This chapter also discusses in detail the main issues with the current bankruptcy regime. This discussion includes: (1) the definition of bankruptcy; (2) the qualification of persons administering bankruptcy processes (3) ranking of creditors; (4) position of employees; (5) available alternatives under the current regime; and (6) the effect of declaration of bankruptcy on existing contracts. Chapter Five outlines the possibility of legal transplants and why it is desirable for Oman to adopt some of the bankruptcy principles that are found in England and the US. However, to avoid the risk of rejection of such transplants, this thesis will highlight the necessity of assessing the functionality and workability of western bankruptcy principles before transplanting them. This chapter also offers a proposal for future bankruptcy reform in Oman. Such reforms include having a clear statutory mandate, making bankruptcy law certain and predictable, and establishing a bankruptcy regime that encourage the rehabilitation of viable enterprises instead of liquidating them. Chapter Six is the overall conclusion of this thesis which explains the main ideas discussed and highlights the main contributions made by this study.