Article 33 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 33 من اللائحة التنفيذية لنظام الإفلاس · الفصل الثالث: إجراء التسوية الوقائية: تأشير الأمين على المقترح
This article requires the debtor to notify creditors of the preventive settlement opening judgment within 7 days, and gives an unlisted creditor 14 days to ask for its claim to be included.
Official text (Arabic)
This article has not been amended since the law was issued.
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، على أن ترفق بالتبليغ نسخة من المقترح أو ما يفيد بإتاحة الاطلاع عليه بأي من الوسائل الإلكترونية التي تحددها لجنة الإفلاس.
2- على الدائن -الذي لم تدرج مطالبته في المقترح- التقدم إلى المحكمة بطلب إدراجها خلال (أربعة عشر) يوماً من تاريخ إعلان المدين افتتاح الإجراء المنصوص عليه في الفقرة (2) من المادة (السادسة عشرة) من النظام.
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 33 explained in plain English
After the court rules to open the preventive settlement procedure, this article of the Implementing Regulations of the Bankruptcy Law regulates two important steps:
First: notifying the creditors. The debtor must notify the creditors identified in the proposal of the opening judgment within 7 days of its issue, and invite them to vote on the proposal. The notice must be accompanied by either:
- a copy of the proposal, or
- evidence that access to it has been made available by an electronic means specified by the Bankruptcy Committee.
Second: the unlisted creditor. If there is a creditor whose claim was not included in the proposal, it must apply to the court to have its claim included within 14 days of the date of the debtor's announcement of the opening of the procedure provided for in paragraph (2) of Article 16 of the Bankruptcy Law. The period is counted from the date of that announcement, not from the date of the opening judgment.
This article protects creditors' right to know of the procedure and take part in it, and places on a creditor whose claim was overlooked the duty to act promptly in asking for its inclusion within the specified period. It is followed by Article 34 on filing the decision to stay claims in the Bankruptcy Register.
If you are a creditor and do not find your claim in the proposal, it is worth consulting a lawyer who specializes in bankruptcy and commercial cases quickly because the period is short.
Practical example
Khalid owns a supply establishment in Dammam and is owed amounts by a company that opened the preventive settlement procedure. Khalid learned of the company's announcement that it had opened the procedure, then discovered that his claim is not included in the proposal. He must submit a request to the court to have it included within 14 days of the date of that announcement.
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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Frequently asked questions about Article 33 of the Saudi Implementing Regulations of the Bankruptcy Law
What is the period to notify creditors of the opening of preventive settlement?
The debtor must notify the creditors identified in the proposal within 7 days of the date the opening judgment is issued.
What should I do if my claim is not included in the settlement proposal?
Apply to the court to have it included within 14 days of the date of the debtor's announcement of the opening of the procedure.
Must the proposal be sent with the notice?
The debtor attaches a copy of the proposal, or evidence that access to it has been made available by an electronic means specified by the Bankruptcy Committee.
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 31
This article sets out when the court approves putting a proposal to amend the plan to creditors and owners for a vote, including a material circumstance, a request within 14 days, and the possible stay of claims.
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 ا
- Article 32
This article requires the preventive settlement proposal to be endorsed by a trustee listed on the trustees' list 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 34
This article requires the debtor to file the court's decision approving or extending a stay of claims with the Bankruptcy Register as soon as it is issued.
على المدين أن يودع لدى سجل الإفلاس قرار المحكمة بالموافقة على طلب تعليق المطالبات أو تمديده فور صدوره.
- Article 35
This article requires that the application submitted under paragraphs (1) and (3) of Article 21 of the Bankruptcy Law be accompanied by the information and documents specified for that purpose.
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.