
Bahrain: Sets New Rules for Bankruptcy Trustee Compensation
The Daily Tribune, 14 July 2025: Bahrain’s Minister of Justice has issued new regulations governing the payment of bankruptcy trustees, giving courts enhanced control over fee determinations.
Under the new order, trustees must submit proposed fees within 10 days of appointment or at nomination. Courts will review these proposals alongside the creditors’ committee recommendations before making final decisions.
Key provisions include:
- Courts can modify fees throughout the case proceedings
- Payments will be drawn from the insolvent estate
- Assessment criteria include business size, work complexity, and asset value preservation
- Additional compensation is available for exceptional services
- Staged payments to follow prescribed tables unless courts decide otherwise
The regulations specify that:
- Stakeholders have 30 days to challenge court-set fees
- Trustee fees receive priority status over unsecured debts
- Payment can be deferred if the estates lack immediate funds
- New assessments are required for duties extending beyond six months post-reorganisation.
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