Article 31 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 31 من اللائحة التنفيذية لنظام الإفلاس · الفصل الثاني: أحكام مشتركة بين إجراءات الإفلاس: طلب افتتاح إجراء الإفلاس
This article of the Regulations sets the cases in which the court agrees to put a proposal to amend the plan to creditors and owners for a vote, and allows a stay of claims.
Official text (Arabic)
This article has not been amended since the law was issued.
1 - توافق المحكمة -بناءً على طلب المدين أو الأمين بحسب الإجراء- على تقديم مقترح لتعديل الخطة للدائنين والملاك وتحدد موعداً للتصويت عليه، وذلك في أي من الحالات الآتية:
أ - إذا تحقق أي من حالات التعديل الواردة في الخطة.
ب - إذا نشأت حالة مؤثرة في تنفيذ الخطة لم ترد في الخطة، على أن يقدم الطلب خلال (أربعة عشر) يوماً من نشوء الحالة، ويعد أيٌّ مما يأتي حالة مؤثرة:
1- حالات القوة القاهرة.
2- حالات الظروف الطارئة المؤثرة, كالاضطرابات الاقتصادية أو المالية الاستثنائية أو وفاة ضامن الخطة.
3- افتتاح إجراء إفلاس لمتعاقد مع المدين تكون سلعه أو خدماته مؤثرة في استمرار نشاط المدين.
ج - إذا اقترح التعديلَ دائنٌ أو أكثرُ تمثل مطالباتهم ( 50 % ) أو أكثر من إجمالي قيمة ديون الدائنين في الخطة أو وافقوا على طلب التعديل الذي قدمه المدين.
2- يجب أن يرافق طلب تعديل الخطة المنصوص عليه في الفقرة (1) من هذه المادة المعلومات والوثائق المحددة لذلك.
3- للمحكمة أن تقضي -بناءً على طلب المدين أو الأمين- بتعليق المطالبات إذا كان سبب تعديل الخطة نشوء حالة مؤثرة.
4- تسري أحكام تصويت الدائنين والملاك على المقترح وأحكام التصديق عليه والتبليغات والإعلانات ذات العلاقة؛ على التصويت على مقترح تعديل الخطة والتصديق عليه.
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 31 explained in plain English
This article of the Implementing Regulations of the Bankruptcy Law regulates how a plan is amended after it has been approved. The court agrees to put a proposal to amend the plan to the creditors and owners and sets a date for voting on it, at the request of the debtor or the trustee, as the procedure requires, in any of the following cases:
- if one of the cases of amendment provided for in the plan itself arises;
- if an affecting circumstance arises in the implementation of the plan that is not covered by it, provided the request is submitted within 14 days of its arising. The following are affecting circumstances: force majeure; affecting emergency circumstances such as exceptional economic or financial disturbances or the death of the plan's guarantor; and the opening of a bankruptcy procedure for a counterparty of the debtor whose goods or services affect the continuation of its activity;
- if the amendment is proposed by one or more creditors whose claims represent 50% or more of the total value of the creditors' debts in the plan, or they agreed to the amendment request submitted by the debtor.
The amendment request must be accompanied by the information and documents specified for that, which according to Article 1 of the Regulations are information and documents determined by the Bankruptcy Committee in coordination with the Ministry of Justice.
If the reason for the amendment is the arising of an affecting circumstance, the court may, at the request of the debtor or the trustee, order a stay of claims. The same provisions that apply to voting on the proposal and approving it, together with the related notifications and announcements, also apply to voting on the proposal to amend the plan and approving it.
To assess whether particular circumstances are an affecting circumstance, it is advisable to consult a lawyer specializing in bankruptcy and commercial cases.
Practical example
A contracting company in Riyadh is carrying out a protective settlement plan, and then a bankruptcy procedure is opened for its main concrete supplier on which its activity depends. This is an affecting circumstance, so a request may be submitted to the court within 14 days of its arising to put a proposal to amend the plan to the creditors and owners, with the possibility of requesting a stay of claims.
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 31 of the Saudi Implementing Regulations of the Bankruptcy Law
When can a bankruptcy plan be amended after it has been approved?
If a case of amendment provided for in the plan arises, if an affecting circumstance arises that the plan does not cover, or if the amendment is proposed or agreed to by creditors whose claims represent 50% or more of the creditors' debts in the plan.
What is the deadline for requesting amendment when an affecting circumstance arises?
The request must be submitted within 14 days of the affecting circumstance arising.
Does the death of the plan's guarantor justify amending it?
Yes. The article gives the death of the plan's guarantor as an example of affecting emergency circumstances, which count as an affecting circumstance.
Are claims stayed while the plan is being amended?
The court may order a stay of claims at the request of the debtor or the trustee if the reason for the amendment is the arising of an affecting circumstance.
More articles on Protective Settlement
- Article 16
This article of the Regulations specifies the details the proposal must include, as the case may be, such as the debtor's financial position, assets and debts, the proposed settlement, classification of creditors and the plan's timetable.
يجب أن يتضمن المقترح -بحسب الأحوال- ما يأتي: أ - معلومات عن المدين ونشاطه. ب- بيان الوضع المالي للمدين وتأثيرات الوضع الاقتصادي عليه. ج - تحديد أصول المدين وتقد
- Article 17
The meeting management rules apply to managing the vote on the proposal, the debtor or trustee prepares minutes of the voting meeting with specified details, then deposits the voting result with the court.
1- تسري قواعد إدارة الاجتماعات على إدارة عملية التصويت على المقترح. 2- يعد المدين أو الأمين -بحسب الإجراء- محضراً لاجتماع الدائنين للتصويت على المقترح، يقيد فيه
- Article 32
This article of the Regulations requires that the proposal for a protective settlement be endorsed by a trustee on the list of trustees as meeting the required information and documents.
يجب أن يكون المقترح المرافق لطلب افتتاح إجراء التسوية الوقائية مؤشراً عليه من أمين مدرج في قائمة الأمناء باستيفائه المعلومات والوثائق المطلوبة.
- Article 33
This article of the Regulations requires the debtor to notify creditors of the opening of the protective settlement within 7 days and gives an omitted creditor 14 days to request inclusion of its claim.
1- على المدين تبليغ الدائنين المحددين في المقترح بحكم المحكمة بافتتاح إجراء التسوية الوقائية خلال (سبعة) أيام من تاريخ صدوره، ودعوتهم إلى التصويت على المقترح، ع
- Article 34
This article of the Regulations requires the debtor to lodge the court's decision approving or extending a stay of claims with the Bankruptcy Register immediately upon its issue.
على المدين أن يودع لدى سجل الإفلاس قرار المحكمة بالموافقة على طلب تعليق المطالبات أو تمديده فور صدوره.
- Article 35
This article of the Regulations requires that a request submitted under paragraphs (1) and (3) of Article 21 of the Bankruptcy Law be accompanied by the information and documents specified for it.
يقدَّم الطلب بموجب الفقرة (1) والفقرة (3) من المادة (الحادية والعشرين) من النظام, مرافقة له المعلومات والوثائق المحددة لذلك.
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.