Strategic Bankruptcy, Insolvency & Restructuring Legal Services for Bahrain’s Construction, Contracting & Real Estate Sectors

At Manal Dhahi Legal Consultants, we provide specialized legal solutions for companies in financial distress across Bahrain’s most exposed and capital-intensive industries construction, contracting, and real estate. Whether your business is facing cash flow shortages, creditor pressure, stalled projects, or regulatory risks, our firm offers expert legal guidance through every stage of bankruptcy protection, debt restructuring, and corporate recovery.

Led by Mrs. Manal Dhahi, one of Bahrain’s leading legal authorities in construction and commercial law, we help clients navigate insolvency with precision protecting assets, stabilizing operations, and negotiating with creditors to achieve viable outcomes. Our services include court-supervised restructuring under Bahrain’s Reorganization and Bankruptcy Law (Law No. 22 of 2018), out-of-court workouts, project-based insolvency management, and full legal representation in creditor disputes and liquidation proceedings.

We understand the unique financial and regulatory challenges these sectors face from unpaid subcontractors to stalled RERA projects, delayed government payments, and high labor liabilities. Our goal is to help you avoid collapse, preserve licenses, and emerge with a stronger, legally protected structure.

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Navigating Financial Distress in Construction, Contracting & Real Estate with Legal Clarity and Sector Expertise

In Bahrain’s high-risk sectors like construction, contracting, and real estate development, financial stability can shift rapidly. Companies operate under tight margins, manage high overhead costs, and often face late payments, project delays, or unforeseen liabilities. A single distressed project can trigger a cascading impact across joint ventures, subcontractors, and financing structures placing the entire business at risk of insolvency or legal action.

At Manal Dhahi Legal Consultants, we offer strategic bankruptcy, insolvency, and restructuring legal services tailored to the operational and regulatory realities of these industries. Our firm understands that financial distress in these sectors is rarely simple it is often project-specific, involves complex supply chains, and must be managed while preserving licenses, contracts, and reputation.

Whether you need protection from creditors under Bahrain’s Reorganization and Bankruptcy Law, wish to restructure debts through court-approved plans, or require legal guidance to wind down or restart business operations, we provide the tools and legal strategies to protect your company and your leadership from irreversible loss.

We work closely with project owners, contractors, subcontractors, developers, banks, investors, and regulators to deliver results that are compliant, ethical, and commercially viable.

With Mrs. Manal Dhahi personally leading all restructuring mandates, our clients benefit from legal precision, sector knowledge, and a practical roadmap toward survival or renewal.

Guiding Your Business Through Crisis with Integrity, Precision & Sector-Centric Strategy

At Manal Dhahi Legal Consultants, we recognize that financial distress in the construction, contracting, and real estate sectors is not just a legal issue it’s a business survival challenge that requires urgency, discretion, and deep industry understanding. Our approach is grounded in principles that ensure your restructuring journey is managed with the highest standards of professionalism and care.

1. Integrity in Representation
We serve our clients with absolute transparency, confidentiality, and professional ethics. During bankruptcy or insolvency, every decision from court filings to negotiations with creditors is approached with honesty, legal discipline, and full compliance with Bahraini law. We protect your business, its people, and its reputation.

2. Precision in Execution
Financial restructuring in high-risk sectors is not a generic process. It involves court filings, regulatory notifications, labor law compliance, asset protection, and stakeholder negotiations. We apply sharp legal precision to every document, deadline, and decision, ensuring full legal enforceability and commercial relevance.

3. Sector-Aligned Legal Strategy
We understand the risks unique to your industry unpaid subcontractors, stalled RERA-registered projects, classification license suspensions, or equipment seizures. That’s why we build tailored legal plans that go beyond theory and respond directly to your operational needs and financial structure.

Our Expertise in Bankruptcy, Insolvency & Restructuring

At Manal Dhahi Legal Consultants, we offer deep legal expertise in guiding financially distressed companies through bankruptcy, insolvency, and restructuring processes in Bahrain with a specialized focus on the high-risk sectors of construction, contracting, and real estate. These industries operate in volatile environments where a single delayed payment, project termination, or regulatory penalty can trigger cash flow crises, operational paralysis, or creditor action.

Our legal team, led by Mrs. Manal Dhahi, understands the mechanics of project-based insolvency, contractor classification risks, subcontractor claims, and the legal requirements of restructuring under Bahrain’s Reorganization and Bankruptcy Law (Law No. 22 of 2018). We represent developers, general contractors, subcontractors, engineering firms, and project owners helping them resolve financial distress with integrity, strategy, and strict legal compliance.

Our Core Capabilities Include:

  • Filing for Court-Supervised Restructuring
    We prepare and submit restructuring applications, negotiate with creditors, and represent companies under judicial oversight to secure temporary legal protections while rebuilding cash flow and operations.
  • Debt Restructuring & Creditor Negotiations
    Our lawyers lead the restructuring of secured and unsecured debt, renegotiate terms with banks and vendors, and help preserve working capital during recovery.
  • Project-Based Insolvency Management
    We isolate distressed projects, protect viable ones, and structure carve-outs, asset sales, or project-specific workouts without compromising the company’s overall survival.
  • Labor & Employee Liabilities
    We legally manage workforce reductions, employment contract terminations, GOSI contributions, and end-of-service settlements, in compliance with Bahraini labor law.
  • Preservation of Licenses & Classifications
    We help prevent the suspension of contractor licenses, project registrations, and regulatory approvals, ensuring your company remains operational through restructuring.
  • Asset Protection & Liquidation Guidance
    From equipment and machinery to real estate holdings and escrow accounts, we advise on asset sales, creditor claims, and court-supervised liquidation where necessary.
  • Defense Against Hostile Creditor Actions
    We defend our clients from lawsuits, enforcement claims, repossessions, or bankruptcy petitions filed by third parties protecting both company and board members.
  • Regulatory & Compliance Advisory
    We maintain open communication with RERA, the Ministry of Works, Tender Boards, and other regulatory entities to ensure compliance throughout the restructuring process.

Complex Licensing and Regulatory Dependencies

A suspended contractor license or canceled RERA registration can shut down projects overnight. We protect and preserve these assets through legal intervention and regulatory engagement.


Project-Based Insolvency Management

Unlike other industries, financial distress in construction or real estate is often isolated to specific projects. We help companies restructure one division while protecting the rest of the business.


Multi-Stakeholder Pressures

Developers, banks, subcontractors, laborers, and regulators are often involved in the same transaction. We mediate and balance the legal responsibilities to keep the business afloat.


Legal Risk to Executives & Owners

Directors who mishandle bankruptcy face personal liability or criminal accusations. We advise leadership on how to meet their duties and avoid exposure.


High Exposure to Financial Risk

Delayed government payments, rising material costs, labor disputes, and mismanaged cash flow can destabilize even established firms. We help mitigate risk, restructure operations, and avoid collapse.


Why Construction, Contracting & Real Estate Companies Need This Legal Role

  In capital-heavy sectors like construction, contracting, and real estate development, financial distress doesn’t just threaten profitability it threatens the legal foundation of the business itself. A stalled government project, an unpaid subcontractor, or a regulatory delay can cascade into lawsuits, project suspensions, and insolvency across the entire operation.

This is why companies in these industries need a specialized bankruptcy and restructuring lawyer one who understands both the legal system and the project-based complexities unique to your field.

At Manal Dhahi Legal Consultants, we’ve seen firsthand how fast financial pressure can escalate into legal crisis when the right legal protections aren’t in place. That’s why we provide early-stage support, full legal representation, and practical guidance throughout all phases of financial recovery.

Here’s why this legal role is essential:

Key Legal Services in Bankruptcy, Insolvency & Restructuring for Construction, Contracting & Real Estate Companies in Bahrain

At Manal Dhahi Legal Consultants, we offer specialized legal services to help distressed companies in construction, contracting, and real estate navigate bankruptcy, avoid collapse, and recover with legal integrity. Below are the 9 core service categories, designed to address sector-specific risks under Bahrain’s Reorganization and Bankruptcy Law (Law No. 22 of 2018).

2. Navigating Bahrain’s Bankruptcy Law

We guide companies through every aspect of Law No. 22 of 2018:

  • Filing for bankruptcy protection
  • Drafting court-approved restructuring plans
  • Complying with judicial supervision procedures
    We ensure clients access all legal protections while preserving long-term viability.

1. High Exposure to Financial Risk

We assist clients with:

  • Restructuring debt to stabilize cash flow
  • Filing for court-supervised reorganization
  • Negotiating settlements with banks, investors, and suppliers
    Our legal strategies help construction firms and developers prevent collapse while maintaining critical operations.

4. Managing Project-Based Insolvency

We help segment distressed projects from viable ones by:

  • Isolating liabilities and carving out troubled assets
  • Restructuring specific project contracts or JV agreements
  • Negotiating project-level workouts with banks or partners
    This approach preserves profitable operations while addressing loss-making ventures.

3. Preserving Project Licenses and Classifications

We protect:

  • Contractor classifications and CR validity
  • RERA project registrations and developer status
  • Municipal licenses and tender board eligibility
    Our legal team communicates with regulators to maintain good standing and prevent disruptions.

5. Supplier and Subcontractor Management

We review:

  • Payment terms, breach clauses, and force majeure conditions
  • Contract enforcement and termination rights
  • Dispute resolution strategies for unpaid subcontractors
    We help preserve the supply chain and reduce legal friction under financial stress.

6. Labor and Employment Obligations

We lawfully manage:

  • Staff reductions, terminations, and benefit settlements
  • GOSI contributions and end-of-service obligations
  • Work visa, permit, and labor contract restructuring
    Our approach minimizes disruption and prevents employment-related litigation.

8. Representation Before Courts and Creditors

We appear on your behalf to:

  • File bankruptcy petitions or defend against hostile claims
  • Negotiate payment plans with creditors or landlords
  • Handle enforcement actions, repossession threats, or lien disputes
    Your company stays protected while we manage legal communications.

7. Asset Protection and Priority Claims

We analyze:

  • Secured vs. unsecured creditor rights
  • Asset liquidation rules and exemptions
  • Escrow funds, trust assets, equipment, and land holdings
    We ensure strategic asset retention and lawful prioritization of claims.

9. Corporate Governance and Liability Protection

We advise owners and executives on:

  • Duties under bankruptcy law
  • Personal liability exposure
  • Ethical and lawful conduct during restructuring
    Our legal guidance shields management from accusations of mismanagement or fraud.

What Makes Our Approach Unique

At Manal Dhahi Legal Consultants, our approach to bankruptcy, insolvency, and restructuring law is uniquely suited to the realities of construction, contracting, and real estate companies in Bahrain. We don’t apply generic legal tactics we craft tailored legal strategies that account for project-based liabilities, sector-specific licenses, and operational continuity.

When your company faces financial distress, your legal advisor must understand more than just the law they must understand how your industry operates under stress. That is exactly what sets our firm apart.

1. Deep Sector Knowledge, Not Just Legal Theory
Our advice reflects years of experience with construction firms, developers, and contracting businesses. We know what’s at stake when licenses are suspended, equipment is repossessed, or workers are unpaid. We act fast, with legal and commercial insight.

2. Led by Bahrain’s Trusted Legal Authority
Mrs. Manal Dhahi is a recognized expert in high-risk sectors and has represented leading companies through complex restructuring matters. Her direct oversight ensures that every filing, negotiation, and court submission reflects legal accuracy and sector realism.

3. Regulatory Integration
We know the licensing, tendering, labor, and real estate regulatory systems in Bahrain. That means faster responses from government bodies, smoother restructuring approvals, and better outcomes for clients trying to stay operational during insolvency.

4. Protection for Executives and Owners
We understand the personal stress business owners face in insolvency. We ensure legal protection for directors and partners, helping you comply with your duties and avoid liability while leading your company through recovery.

5. Confidentiality, Ethics & Control
Financial distress is sensitive. We maintain strict confidentiality and structure all legal documents NDAs, reorganization plans, court filings to protect your privacy and position. You remain in control, with strategic guidance every step of the way.

Our Achievements

Over the years, Manal Dhahi Legal Consultants has become a trusted legal ally for companies facing insolvency, debt crises, and business restructuring across Bahrain’s most financially exposed sectors construction, contracting, and real estate. Our firm has guided stakeholders through some of the most complex recovery efforts in the region, delivering outcomes that preserve operations, protect leadership, and restore business viability.

Key Highlights of Our Track Record:

  • Court-Supervised Restructuring Success
    We’ve successfully represented contractors and developers before Bahraini bankruptcy courts, securing judicial protection, creditor standstills, and court-approved reorganization plans under Law No. 22 of 2018.
  • License and Project Preservation
    Our team has prevented the suspension of vital licenses, including contractor classifications, real estate project registrations (RERA), and tender board eligibility ensuring clients remained operational throughout recovery.
  • Multimillion-Dinar Debt Workouts
    We’ve negotiated complex settlements and payment plans with banks, vendors, and landlords avoiding liquidation while preserving trust and business relationships.
  • Post-Insolvency Recovery Planning
    From restructured CRs to staff redeployment, our clients emerge stronger. We’ve managed post-insolvency legal alignment for real estate developers, contractors, and joint ventures including employment compliance and asset reallocation.
  • Strategic Representation in Disputes
    Whether defending against hostile creditor claims or initiating action against non-performing partners, we’ve helped our clients protect their rights, reputation, and assets through strategic litigation or mediation.

What is the bankruptcy process under Bahraini law? 

Bahrain’s Reorganization and Bankruptcy Law (No. 22 of 2018) allows companies to file for restructuring, offering court protection and time to reorganize debts under judicial supervision.

Yes. Out-of-court workouts and informal creditor arrangements are possible and often more discreet. We assess the best strategy based on your risk, timing, and legal exposure.

If not handled properly, insolvency can lead to license suspension. We engage with regulators to preserve your classification and maintain eligibility to operate.

Once accepted, your company is shielded from lawsuits, asset seizures, and creditor enforcement actions while the court reviews your restructuring plan.

No. Creditors can also initiate bankruptcy proceedings. We help you proactively file before creditor action escalates.

Depending on complexity, court-supervised restructuring can take 3–6 months. Informal settlements may resolve sooner.

Potentially. We work to preserve RERA registrations, communicate with regulators, and keep projects active during restructuring.

We identify which assets are secured, exempt, or must be listed for court approval, ensuring your operational tools are protected whenever possible.

We review labor contracts, manage lawful terminations, and calculate GOSI dues, ensuring minimal risk of legal claims.

Yes. Carve-out sales and project-specific asset transfers are permitted. We ensure they’re done legally and protect your company’s core structure.

Generally, yes the company remains under management (debtor-in-possession) unless fraud or mismanagement is proven.

Not if they fulfill their legal duties. We guide leadership on avoiding personal exposure and accusations of negligence or fraud.

Yes. Many lenders prefer organized restructuring over litigation. We handle negotiations and ensure legal enforceability.

We assess claims, review contracts, and either settle or restructure payment obligations under a formal plan.

JV agreements are reviewed for exit rights and obligations. We negotiate with partners to preserve or restructure the partnership.

Yes. The law allows renegotiation or court-approved contract modifications in cases of financial hardship.

Secured creditors are prioritized. We classify and communicate with each type, ensuring compliance with court orders.

The court oversees restructuring plans, creditor objections, and plan confirmations. We represent your company through each phase.

Absolutely. With the right legal plan, many businesses recover, restructure, and return stronger than before.

Disclosure may be required to regulators and partners. We advise on managing reputation and legal obligations discreetly.

Financial statements, debt listings, project obligations, labor records, and all licenses must be organized for review.

Contact us to book a confidential consultation. We’ll assess your financial/legal status and recommend the right path from informal settlement to court-led restructuring.

Contact Us for Legal Support in Bankruptcy, Insolvency & Restructuring

 If your construction, contracting, or real estate company is facing financial distress in Bahrain, don’t wait until it’s too late. At Manal Dhahi Legal Consultants, we provide proactive, sector-specific legal solutions to help you restructure debts, preserve licenses, protect assets, and restore operations — all while complying fully with Bahraini law.

Led by Mrs. Manal Dhahi, a recognized authority in high-risk sector legal matters, we work closely with clients to stabilize their position, prevent hostile creditor action, and deliver court-approved or out-of-court recovery strategies with precision and confidentiality.

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