Article 70 of the Saudi Implementing Regulations of the Bankruptcy Law

This article of the Regulations, within the administrative liquidation procedure, explains when the proceeds of selling the bankruptcy estate's assets are not worthwhile. It limits this to two cases:

1. The cost case: If the estimated cost of selling the asset equals or exceeds its estimated value on sale. That is, the sale will leave no benefit after its costs are deducted.
2. The impossibility case: If it is not possible to sell the asset within a reasonable time. The text did not fix this time at a specific number of days.

Note that the first case depends on estimates and not on actual figures: an estimated cost against an estimated value. It is therefore tied to Article 69, which requires the Bankruptcy Committee to prepare an inventory list of the bankruptcy estate's assets that includes their estimated value.

It is followed by Article 71, which sets the order of distributing the proceeds if selling the assets produces proceeds sufficient to meet the expenses of the procedure: the Bankruptcy Committee's fees and expenses first, then distribution to the creditors.

This article does not state what follows from the proceeds being considered not worthwhile, or who decides that; these are matters referred to the Bankruptcy Law and related rules. Anyone who wants to assess the position of a particular asset in an existing procedure should consult a lawyer who specializes in bankruptcy and commercial cases.