Article 69 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 69 من اللائحة التنفيذية لنظام الإفلاس · الفصل التاسع: إجراء التصفية الإدارية
This article requires the Bankruptcy Committee, in administrative liquidation, to prepare an inventory list of the bankruptcy estate's assets that includes their estimated value.
Official text (Arabic)
This article has not been amended since the law was issued.
تعد لجنة الإفلاس قائمة جرد بأصول التفليسة، على أن تتضمن القيمة التقديرية لتلك الأصول.
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 69 explained in plain English
This article of the Regulations places on the Bankruptcy Committee a duty in the administrative liquidation procedure: to prepare an inventory list of the bankruptcy estate's assets.
The text sets a specific condition for the list: that it include the estimated value of each of those assets. It is not enough to list the assets; their value must be estimated.
The importance of this list appears from the neighboring articles:
- Article 68 allows the Bankruptcy Committee to use whomever it sees fit to carry out the work of administrative liquidation, which may include inventory and valuation work.
- Article 70 makes the proceeds of selling an asset not worthwhile if the estimated cost of selling it equals or exceeds its estimated value, or if it cannot be sold within a reasonable time. The estimated value in the inventory list helps in this comparison.
The article does not specify the method of estimation, who carries it out or the form of the list, and mentions no period for preparing it. The value in it is by nature an estimate, that is, not necessarily the price at which the asset is actually sold.
A creditor or debtor in an administrative liquidation who wants to understand the effect of this list on his situation is best advised to consult a lawyer who specializes in bankruptcy and commercial cases.
Practical example
In the administrative liquidation of a small appliance shop in Abha, the Bankruptcy Committee prepares a list that inventories the remaining goods, the furniture and the delivery car, and puts against each asset its estimated value, such as SAR 15,000 for the car and SAR 3,000 for the furniture.
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 69 of the Saudi Implementing Regulations of the Bankruptcy Law
Who prepares the inventory list of the bankruptcy estate's assets in administrative liquidation?
The Bankruptcy Committee.
What must the inventory list contain?
It must include the estimated value of the bankruptcy estate's assets.
Is the estimated value the final sale price?
The text speaks of an estimated value, and does not make it the actual sale price.
More articles on Administrative Liquidation
- Article 68
This article allows the Bankruptcy Committee to use whomever it sees fit to carry out the work of the administrative liquidation procedure.
للجنة الإفلاس الاستعانة بمن تراه في أداء أعمال إجراء التصفية الإدارية.
- Article 70
This article identifies two cases in which the proceeds of selling bankruptcy estate assets are not worthwhile: the estimated cost of sale equals or exceeds the asset's value, or the sale cannot be made within a reasonable time.
تكون حصيلة بيع أصول التفليسة غير مجدية في الحالات الآتية: أ - إذا كانت التكلفة المقدرة لبيع الأصل تساوي أو تزيد على القيمة المقدرة لبيعه. ب - إذا تعذر بيع الأصل
- Article 71
If selling the bankruptcy estate's assets yields proceeds sufficient for the expenses of liquidation or small debtors' liquidation, they are distributed starting with the Bankruptcy Committee's fees and expenses, then to the creditors.
إذا نتجت عن بيع أصول التفليسة حصيلة تكفي للوفاء بمصروفات إجراء التصفية أو التصفية لصغار المدينين، فيكون توزيعها وفقاً للترتيب الآتي: أ - أتعاب ومصروفات لجنة الإ
- Article 72
This article requires the Bankruptcy Committee to file the decision ending administrative liquidation with the court and to file proof of the ending in the Bankruptcy Register and the Commercial Register within 5 days, and limits removing the debtor's name to a natural person.
1- تودع لجنة الإفلاس لدى المحكمة قرار إنهاء إجراء التصفية الإدارية مرافقاً له المعلومات والوثائق المحددة لذلك، وتودع لدى سجل الإفلاس والسجل التجاري ما يفيد بإنه
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.