‘Souk-Al-Manakh' victims

Arab Times

08-07-2025

The amended Bankruptcy Law, issued in 2020, introduced significant measures that go beyond merely liquidating debtors' assets. It emphasizes preventive settlement and restructuring procedures as alternatives before declaring bankruptcy, thereby increasing the chances for struggling economic projects. The important provisions of the law include the establishment of a specialized bankruptcy court and the creation of a bankruptcy administration. This administration, affiliated with the court, handles various administrative and technical tasks related to bankruptcy cases, such as receiving applications, supervising procedures, forming bankruptcy committees, proposing public policies, and developing operational guidelines.
The new law also enables debtors experiencing financial difficulties, but who have not yet stopped payments, to request a preventive settlement by reaching an agreement with creditors, without needing to declare bankruptcy. If the debtor stops paying debts or if the preventive settlement proves ineffective, restructuring procedures may be initiated. These procedures aim to help the debtor continue their business through a carefully designed plan to reorganize their financial and administrative affairs under the supervision of a bankruptcy judge.
Should insolvency persist and settlements fail, the debtor is formally declared bankrupt, and barred from managing or disposing of their assets. At this stage, a bankruptcy trustee is appointed, and all individual lawsuits and proceedings against the debtor are suspended. When comparing the current and previous bankruptcy laws, particularly in how they handle debtors, it becomes clear how deeply unjust the treatment of 668 citizens involved in the 'Manakh Markets' case had been. These individuals, including heirs and partners, some deceased and others still living, suffered huge losses.
The value of their assets dropped to KD 500 million, while their debts ballooned to four times that amount. This dramatic decline occurred largely due to mismanagement by an inexperienced government employee entrusted with handling their assets. Allegations have long circulated that some assets were sold at suspiciously low prices. Over the span of more than three decades, their debt accumulated astronomical interest at an unsustainable rate of 15 percent, as though they were being subjected to a lifelong penalty.
On top of their financial burden, they were banned from traveling except in urgent cases and only with the approval of a bankruptcy judge, who is often unavailable, especially during weekends and official holidays. These conditions have imposed not only financial hardship but also severe psychological distress and social embarrassment. The law also prohibits them from opening bank accounts or obtaining bank cards or ATMs. They are stripped of many basic rights that, in some cases, even convicted criminals are not denied. We sincerely hope that His Excellency the First Deputy Prime Minister and Minister of Interior Sheikh Fahad Yousef Al-Sabah, who is known for his commitment to reform and restoring justice, will give this issue the attention it deserves.
Meeting with some of those affected could offer valuable insight into the reality of their long-standing suffering, the continuation of which defies reason or fairness. It is time for these individuals to return to a normal life, especially as many of them are now in the later stages of life, with little time left. On a personal note, I extend my heartfelt thanks to everyone who congratulated me on being named the most widely followed and influential writer in Kuwait. I am also deeply grateful to all who participated in the survey and shared their views.