Bankruptcy and liquidation proceedings in the Kingdom of Saudi Arabia are governed by the Bankruptcy Law issued by Royal Decree No. (M/50) dated 28/5/1439H, along with its Implementing Regulations. It aims to protect creditors’ rights, regulate the financial position of debtors, and achieve a balance between the continuation of economic activities and their orderly liquidation.
At SB Lawyers, we provide comprehensive legal services in bankruptcy and liquidation matters, supporting individuals and businesses throughout all stages of the statutory procedures. Our legal team possesses extensive experience and in-depth knowledge of the bankruptcy laws and procedures applicable in the Kingdom of Saudi Arabia.
Our Services:
- Consultancy: SB Lawyers provides specialized legal consultations in bankruptcy and liquidation matters, as follows:
- Assisting individuals and entities in accurately understanding their financial and legal positions.
- Enabling clients to make sound legal decisions in a timely manner.
- Conducting a comprehensive review of the client’s case and analyzing the associated financial and legal risks and obligations.
- Clarifying the statutory options available under the Saudi Bankruptcy Law, including:
Financial reorganization.
b. Preventive settlement.
c. Liquidation. - Providing practical legal solutions aimed at protecting clients’ rights and minimizing the legal and financial consequences arising from financial distress or bankruptcy.
- Full compliance with the application of procedures and regulations in force in the Kingdom of Saudi Arabia.
- Planning: Our strategic planning services are designed to support clients prior to initiating bankruptcy or liquidation proceedings, as follows:
- Developing a clear and effective legal roadmap tailored to the client’s financial and regulatory position.
- Assisting clients in evaluating the available procedural and statutory options.
- Helping define realistic and achievable objectives.
- Preparing the necessary legal and regulatory framework to ensure a smooth and secure transition.
- Supporting financial restructuring pathways or an orderly exit, as appropriate to each case.
- Minimizing potential disruptions and safeguarding clients’ long-term interests.
- Ensuring full compliance with the laws and regulations in force in the Kingdom of Saudi Arabia
Additional services include:
- Assessing the legal position of the debtor or creditor
- Determining and submitting the most appropriate procedure under the Bankruptcy Law (preventive settlement, financial reorganization, or liquidation).
- Preparing and drafting bankruptcy filing petitions before the competent court.
- Representing the debtor or creditor in commercial court hearings.
- Representing creditors to protect their rights and ensure the priority of their claims
- Legal supervision of liquidation procedures
- Managing bankruptcy proceedings after their initiation by court order.
- Supervising and safeguarding the debtor’s assets.
- Preparing periodic reports for the court and the bankruptcy committee
- Receiving and verifying creditors’ claims.
