London firm seals Dubai's first CVL

Dubai's first ever creditors' voluntary liquidation has taken place at the Dubai International Financial Centre.

London based Griffins, established in 1978, and Sajjad Haider Chartered Accountants, based in Dubai, advised on the winding up of financial advisers Libertas Capital.

Shabbar Dhalla, Griffins director of business recovery, said: "We are leading the way in establishing good practice in insolvency as the region reviews and develops its own processes and procedures.”

Libertas Capital, a financial brokerage company, had its licence withdrawn by the Dubai Financial Services Authority as the company could not meet the applicable regulatory requirements.

The lost licence has meant Libertas could no longer continue to offer financial services in Dubai with the company stopping, with over $4.25m (£2.67m) in outstanding liabilities.

Currently one of Libertas Capital's directors, Terrance Collins, is in jail for a bounced cheque. Dhalla told Accountancy Age under UAE law, if a cheque bounces the issuer is jailed until the debt is either repaid or an agreement is reached with the creditor.

Griffins established their Dubai offices in May this year.

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