Article 16 of the Saudi Implementing Regulations of the Bankruptcy Law

This article of the Implementing Regulations of the Bankruptcy Law specifies the content of the proposal. The phrase "as the case may be" means that the items are stated to the extent they apply to the debtor's situation. The required items can be grouped as follows:

• The debtor's information: information about the debtor and its activity, and a statement of its financial position and the effects of the economic situation on it.
• Assets: identifying the debtor's assets and estimating their total value, the assets that are subject to security for a debt, the assets excluded from the proposal and their value, and detailed information on assets not owned by the debtor that are to be included, their sources and any condition tied to including them.
• Security: security that another party gives for the debtor's debts, stating what was given by a related party, and any in-kind or personal security for the proposal given by the owners, managers or others.
• Debts and claims: the list of debts with their values, origin and payment dates, how creditors' claims are to be dealt with, including secured creditors and anyone who claims to be one, how related-party creditors are to be dealt with, and disclosure of circumstances that may lead to potential claims under Chapter Thirteen of the Law if any of the liquidation procedures is opened, along with any proposal for compensation. This includes the claims and lawsuits the debtor has brought, or that have been brought against it or are expected, and their estimated value.
• Settlement and implementation: details of the proposed settlement, such as restructuring the business, capital or debts, or reducing, postponing or paying them in installments or converting them into capital in the debtor, the dates and amounts of distributions to affected creditors, how the debtor will carry on its activity during the procedure, any new financing and how it will be repaid, and any existing or potential cross-border bankruptcy procedures.
• Voting and the plan: classification of creditors so that each class includes holders of similar rights, taking into account the effect of the proposal on their rights, voting procedures, the cases in which amending the plan may be proposed, a clause for late claims not included, and the timetable for implementing the plan.

Article 17 provides that the meeting management rules apply to the vote on the proposal. Because preparing the proposal is both financial and legal work, the debtor would do well to consult a lawyer specializing in bankruptcy cases and a qualified accountant.