Article 18 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 18 من اللائحة التنفيذية لنظام الإفلاس · الفصل الثاني: أحكام مشتركة بين إجراءات الإفلاس: طلب افتتاح إجراء الإفلاس
This article of the Regulations requires that any document issued in the debtor's name state the type of procedure opened: the debtor does so in preventive settlement and financial restructuring, and the trustee or the Bankruptcy Committee in liquidation.
Official text (Arabic)
This article has not been amended since the law was issued.
1- على المدين فور افتتاح أي من إجراءات التسوية الوقائية أو إعادة التنظيم المالي تضمين أي مستند يصدر باسمه نوع الإجراء المفتتح له، وعلى الأمين في أي من إجراءي إعادة التنظيم المالي التحقق من التزام المدين بذلك.
2- على الأمين أو لجنة الإفلاس -بحسب الإجراء- فور افتتاح أي من إجراءات التصفية؛ تضمين أي مستند يصدر باسم المدين، نوع الإجراء المفتتح للمدين
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 18 explained in plain English
This article of the Implementing Regulations of the Bankruptcy Law requires stating the type of procedure opened in any document issued in the debtor's name, so that anyone who looks at the debtor's documents can see that it is subject to a bankruptcy procedure and what type it is.
In preventive settlement and financial restructuring: the debtor, immediately on the opening of any of these procedures, must include in any document issued in its name the type of procedure opened for it. In either of the financial restructuring procedures, the trustee must verify the debtor's compliance with this.
In liquidation: immediately on the opening of any of the liquidation procedures, the obligation falls on the trustee or the Bankruptcy Committee, according to the procedure, to include in any document issued in the debtor's name the type of procedure opened for it.
Important notes:
- The obligation begins "immediately" on opening, not after a period.
- It covers "any document" issued in the debtor's name, and the text does not exclude any type of document.
- The person responsible differs by type of procedure: the debtor in preventive settlement and financial restructuring, and the trustee or the Bankruptcy Committee in liquidation.
Relation to neighboring articles: Article 17 regulates the vote on the proposal and depositing its result with the court, and Article 19 provides that the expenses of the bankruptcy procedure are paid from the bankruptcy estate's assets unless transgression or negligence is proved.
This article does not mention a penalty for breaching this obligation. Anyone for whom a procedure has been opened and who needs to know a suitable wording for their documents would do well to consult a lawyer specializing in bankruptcy cases.
Practical example
A financial restructuring procedure was opened for a supply company in Riyadh. From that day, the company states on its invoices, contracts and correspondence issued in its name that it is subject to a financial restructuring procedure, and the appointed trustee verifies its compliance.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Active contributorFrequently asked questions about Article 18 of the Saudi Implementing Regulations of the Bankruptcy Law
Must the bankruptcy procedure be stated in a company's documents?
Yes. Any document issued in the debtor's name must include the type of procedure opened for it immediately on its opening.
Who is responsible for stating the type of procedure in documents in liquidation?
The trustee or the Bankruptcy Committee, according to the procedure.
Who verifies the debtor's compliance in financial restructuring?
The trustee, in either of the financial restructuring procedures.
More articles on Opening and Ending a Bankruptcy Procedure
- Article 4
A request to open a bankruptcy procedure goes to the court with the specified documents, the trustee submits the small debtor's or competent authority's decision for judicial deposit, and the court may order the debtor to provide documents.
1- يُقدم طلب افتتاح إجراء الإفلاس إلى المحكمة مرافقاً له المعلومات والوثائق المحددة لذلك. 2- يقدم الأمين قرار المدين الصغير أو الجهة المختصة -من أجل الإيداع الق
- Article 5
After registration of a request to open any liquidation procedure, the court may appoint a trustee to replace the debtor in managing its activity, or seize the debtor's assets.
للمحكمة -من تلقاء نفسها أو بناء على طلب ذي مصلحة- أن تأمر, بعد قيد طلب افتتاح أي من إجراءات التصفية، بأي مما يأتي: أ - تعيين أمين مدرج في قائمة الأمناء يحل محل
- Article 19
The expenses of a bankruptcy procedure are paid from the bankruptcy estate's assets, unless transgression or negligence is proved.
تدفع مصروفات إجراء الإفلاس من أصول التفليسة، ما لم يثبت تعدٍّ أو تفريط.
- Article 20
This article of the Regulations governs the request to end a bankruptcy procedure: attaching documents, prior notice and its content, objection before the court within 14 days, and the request to end on completion of the plan.
1 - يقدم طلب إنهاء إجراء الإفلاس مرافقة له المعلومات والوثائق المحددة لذلك. 2- على المدين أو الأمين -بحسب الإجراء- تبليغ الدائنين قبل تقديم طلب إنهاء إجراء الإف
- Article 21
A natural-person debtor who has not been discharged from a remaining debt must notify creditors if he starts a profit-making activity within 24 months of ending liquidation, and apply to distribute any money that comes to him.
1- على المدين ذي الصفة الطبيعية -الذي لم يبرأ من دين متبق في ذمته- تبليغ دائنيه عند بدء ممارسته نشاطاً تجارياً أو مهنياً أو يهدف إلى تحقيق الربح خلال (أربعة وعش
- Article 56
This article of the Regulations allows the trustee, at the debtor's request, to ask the court to postpone ending the liquidation for an acceptable reason, such as bringing a claim against a third party.
للأمين -بناءً على طلب المدين- أن يتقدم إلى المحكمة بطلب تأجيل إنهاء إجراء التصفية لسبب مقبول بما في ذلك إقامة دعوى ضد الغير للحصول على تعويض أو استرداد أصل، على
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.