In force Last amended 9/7/1441 AH
Saudi Bankruptcy Law
نظام الإفلاس
The Bankruptcy Law of Saudi Arabia. This page presents the official Arabic text of each article with plain-English explanations.
- Articles
- 231
- In force
- 231
- Amended
- 2
- Issued
- 28/5/1439 AH
Issued by: مرسوم ملكي رقم ( م/50) وتاريخ 1439/5/28هـ · قرار مجلس الوزراء رقم (264) بتاريخ 1439/5/27 هـ
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Bankruptcy Law by topic
General Provisions and the Bankruptcy Committee34 articlesProtective Settlement32 articlesFinancial Reorganization55 articlesLiquidation of the Debtor's Assets49 articlesSmall Debtor Bankruptcy Procedures41 articlesAdministrative Liquidation21 articlesCreditors' Rights in Bankruptcy87 articlesFinancing During Bankruptcy9 articlesSet-Off and Priority of Debts19 articlesBankruptcy Offenses and Voidable Transactions16 articlesBankruptcy of a Deceased Debtor8 articles
Articles of the Saudi Bankruptcy Law
الفصل الأول: أحكام عامةArticles 1–8
- Article 1Article 1 defines the key terms of the Bankruptcy Law, such as debtor, creditor, defaulting debtor, bankrupt, related party and the different bankruptcy procedures.
- Article 2Article 2 lists the seven bankruptcy procedures the Law regulates, from protective settlement to administrative liquidation.
- Article 3Article 3 specifies which entities are regulated entities and requires the competent authority's approval before a request to open any bankruptcy procedure for them is registered.
- Article 4Article 4 specifies who is subject to the Bankruptcy Law: individuals carrying on commercial, professional or profit-making business, registered companies and profit-making entities, and non-Saudi investors to the extent of their assets in the Kingdom.
- Article 5Article 5 sets out the objectives of bankruptcy procedures: enabling the debtor to organize its affairs, treating creditors fairly, maximizing asset value, cutting costs and time, and administrative liquidation when assets are weak.
- Article 6Article 6 gives the court the power to issue the judgments and decisions needed for bankruptcy procedures, supervise their execution, decide their disputes and impose penalties.
- Article 7Article 7 bars the liquidation of any person under another law unless its assets cover all its debts and it is not defaulting, and makes management members jointly liable if this is violated.
- Article 8Article 8 refers to the Implementing Regulations the provisions on cross-border bankruptcy procedures.
الفصل الثاني: لجنة الإفلاس إنشاء لجنة الإفلاس وتحديد اختصاصاتهاArticles 9–11
- Article 9Article 9 establishes the Bankruptcy Committee by Council of Ministers decision and sets its jurisdictions, such as managing the bankruptcy register, licensing trustees and experts, and managing administrative liquidation.
- Article 10Article 10 provides that the working rules and procedures of the Bankruptcy Committee are issued by decision of the Minister, and requires the Committee to submit periodic reports to him.
- Article 11Article 11 allows the Bankruptcy Committee to use whichever experts and specialists it sees fit, and to delegate whomever it sees fit to carry out some of its administrative and executive jurisdictions.
الفصل الثاني: لجنة الإفلاس: موارد لجنة الإفلاسArticles 12–12
الفصل الثالث: إجراء التسوية الوقائية طلب افتتاح إجراء التسوية الوقائيةArticles 13–14
- Article 13Article 13 allows a debtor at risk of default, defaulting or bankrupt to request the opening of protective settlement, and bars it if it underwent the procedure in the previous twelve months.
- Article 14Article 14 requires the protective settlement request to be accompanied by the proposal, information and documents, and the proposal to include the debtor's financial position and a classification of creditors into classes.
الفصل الثالث: إجراء التسوية الوقائية: صلاحيات المحكمة في افتتاح إجراء التسوية الوقائيةArticles 15–16
- Article 15Article 15 governs how the court hears a protective settlement application within 40 days, and when it opens the procedure, rejects the application, or adjourns the hearing for up to 21 days.
- Article 16Article 16 requires the ruling opening a protective settlement to set a creditors' vote within 40 days, extendable by another 40 days, and requires the debtor to announce the opening within 7 days.
الفصل الثالث: إجراء التسوية الوقائية: تعليق المطالباتArticles 17–19
- Article 17Article 17 allows the debtor to request a stay of claims when applying for a protective settlement, provided it attaches a report from a trustee listed in the register of bankruptcy trustees.
- Article 18Article 18 sets the stay of claims at no more than 90 days, extendable by 30 days at the debtor's request up to a maximum of 180 days, and explains when the stay ends.
- Article 19Article 19 requires the debtor to notify its creditors of the stay of claims decision as soon as it is issued, and to exercise due diligence to persuade them to approve the proposal.
الفصل الثالث: إجراء التسوية الوقائية: أثر تعليق المطالباتArticles 20–21
- Article 20Article 20 prohibits any action or lawsuit against the debtor or its assets during the stay of claims, and enforcement on security or claims against a guarantor without court approval; any violating action is void.
- Article 21Article 21 sets two cases in which the court approves enforcement on security during a stay of claims, addresses the request of a person who finds their property, and lifts the stay for specific claims.
الفصل الثالث: إجراء التسوية الوقائية: العقودArticles 22–26
- Article 22Article 22 provides that filing a protective settlement application or opening the procedure does not accelerate deferred debts or make the price due, and any contrary condition is void.
- Article 23Article 23 provides that filing a protective settlement application or opening the procedure has no effect on any contract to which the debtor is a party, and any contrary condition is void.
- Article 24Article 24 provides that the debtor's contracts remain in force after a protective settlement opens, binds both parties to their later obligations, and lets the contracting party request termination if the debtor defaults.
- Article 25Article 25 allows the court, at the debtor's request, to terminate any contract to which it is a party if necessary to protect its business and in the interest of a majority of creditors without serious harm to the counterparty, except security contracts.
- Article 26Article 26 excludes government tender and procurement contracts from Articles 22 to 25, and bank financing contracts from Articles 23 to 25.
الفصل الثالث: إجراء التسوية الوقائية: التصويت على المقترحArticles 27–31
- Article 27Article 27 limits the right to vote on a protective settlement proposal to a creditor or owner whose statutory or contractual rights are affected by the proposal.
- Article 28Article 28 requires the debtor to invite owners to vote on the proposal if it affects their rights, in accordance with the relevant laws, with their vote preceding the creditors' vote.
- Article 29Article 29 requires the debtor to classify its creditors into classes if they are numerous and the nature of their debts or rights differs, as the Implementing Regulations specify.
- Article 30Article 30 requires an expert to be appointed to value disputed claims for voting purposes, and allows creditors' claims omitted from the proposal for a reason attributable to the debtor to be included with court approval.
- Article 31Article 31 governs the creditors' vote on a protective settlement proposal, the majority required to accept it, the debtor's duty to notify the result, and the court's authority if voting cannot take place.
الفصل الثالث: إجراء التسوية الوقائية: طلب تصديق المحكمة على المقترحArticles 32–33
- Article 32Once creditors accept the protective settlement proposal, the debtor must request the court's approval after notifying the creditors, and the court sets the date of the approval hearing.
- Article 33Neither the opening of a protective settlement nor court approval of the proposal relieves the debtor of its obligations relating to its business that other laws impose.
الفصل الثالث: إجراء التسوية الوقائية: التصديق على المقترحArticles 34–35
- Article 34The court approves a protective settlement proposal after verifying that creditors have accepted it and that it meets the fairness criteria, and a rejecting creditor may object at the approval hearing under conditions.
- Article 35The article sets three conditions that together mean a proposal meets the fairness criteria: observing voting procedures, sufficient information, and respect for creditors' existing rights.
الفصل الثالث: إجراء التسوية الوقائية: التبليغ والإيداعArticles 36–36
الفصل الثالث: إجراء التسوية الوقائية: آثار تصديق المحكمة على المقترحArticles 37–37
الفصل الثالث: إجراء التسوية الوقائية: إنهاء الإجراءArticles 38–41
- Article 38When the plan has been fully carried out, the debtor must ask the court to terminate the protective settlement after notifying the creditors, and any interested party may object within 14 days.
- Article 39The article lists seven cases in which the court rules to terminate the protective settlement procedure, including completion of the plan, failure to reach the voting majority, and refusal of approval.
- Article 40The debtor must file the court's ruling terminating the protective settlement procedure in the bankruptcy register within no more than 5 days.
- Article 41After a protective settlement ends, the court, on its own initiative or at an interested party's request, opens the appropriate bankruptcy procedure if three conditions are met together.
الفصل الرابع: إجراء إعادة التنظيم المالي: طلب افتتاح الإجراءArticles 42–45
- Article 42The article states who may request the opening of financial reorganization and its three cases, and bars the request if the debtor underwent this procedure in the previous 12 months.
- Article 43A request to open the financial reorganization procedure is filed with the court after submission, accompanied by the relevant information and documents as the Implementing Regulations specify.
- Article 44If someone other than the debtor submits a financial reorganization request, the court notifies the debtor within 5 days, and the debtor may object at the hearing in three cases.
- Article 45The debtor, owner, manager, officer, board member and auditor are exempted from the Companies Law provisions on a company's losses reaching a specified percentage, as the Implementing Regulations specify.
الفصل الرابع: إجراء إعادة التنظيم المالي: تعليق المطالباتArticles 46–46
الفصل الرابع: إجراء إعادة التنظيم المالي: افتتاح الإجراءArticles 47–47
الفصل الرابع: إجراء إعادة التنظيم المالي: الصلاحيات العامة للمحكمةArticles 48–49
- Article 48The court, on its own initiative or at an interested party's request, may summon anyone holding information or documents relating to a financial reorganization request, who must provide them within the set period.
- Article 49The court may subject to financial reorganization an asset the debtor shares with another or another person who meets the procedure's conditions, on conditions and with protection for both sides' creditors.
الفصل الرابع: إجراء إعادة التنظيم المالي: الأثر المترتب على افتتاح الإجراء: (تعيين الأمين والخبير وقاضي الإشراف وصلاحياتهمArticles 50–55
- Article 50The court appoints a trustee from the register of bankruptcy trustees in the opening ruling for financial reorganization; the article governs selection criteria, duty, delegation, multiple trustees and filing the ruling.
- Article 51At the trustee's request, the court may appoint an expert, from the register of experts or otherwise, to help the trustee carry out its tasks in financial reorganization.
- Article 52The article bars people connected to the debtor from appointment as trustee or expert, requires disclosure of the relationship with the debtor and creditors, and sanctions non-disclosure with removal and loss of fees.
- Article 53At its discretion, the court may appoint one or more judges to supervise the implementation of the financial reorganization procedure, and the court sets their tasks.
- Article 54The court may remove the trustee or expert and appoint a replacement if a legitimate reason arises, and neither may step down without a legitimate reason the court accepts.
- Article 55The article refers to the Implementing Regulations to set the mechanism for fixing the fees of the trustee and expert and related expenses in the financial reorganization procedure.
الفصل الرابع: إجراء إعادة التنظيم المالي: الإعلان عن الإجراءArticles 56–56
الفصل الرابع: إجراء إعادة التنظيم المالي: الإشراف على الإجراءArticles 57–59
- Article 57The trustee supervises the debtor's business during financial reorganization to verify the fairness of the procedure, implementation of the plan, speed of performance and protection of the interests of those affected, under the Bankruptcy Law.
- Article 58The article lists the financial reorganization trustee's tasks and powers, such as monitoring the debtor's financial operations and attending hearings and meetings, and requires honesty and truthfulness.
- Article 59The article gives the trustee the right to obtain the debtor's information and documents from the court, the debtor, creditors, and public and private bodies, and disclosures to it are not a breach of confidentiality.
الفصل الرابع: إجراء إعادة التنظيم المالي: العقودArticles 60–62
- Article 60As soon as the trustee is appointed, the debtor must give it a detailed list of its contracts in force, copies and a report on what it wants to continue or end; the trustee may request more information and must examine everything carefully.
- Article 61The article gives the financial reorganization trustee power to terminate the debtor's contracts and the leases of its business premises within set periods and on conditions, preserving the contracting party's rights and excluding government and financing contracts.
- Article 62The article explains when the court accepts an objection by a party contracting with the debtor to the trustee's decision to terminate its contract during financial reorganization.
الفصل الرابع: إجراء إعادة التنظيم المالي: تقديم المطالباتArticles 63–63
الفصل الرابع: إجراء إعادة التنظيم المالي: عدم تقديم المطالباتArticles 64–64
الفصل الرابع: إجراء إعادة التنظيم المالي: جرد أصول التفليسة للمدينArticles 65–66
- Article 65The trustee must prepare an inventory list of the bankruptcy estate assets showing their details, security, what the debtor holds and what is the subject of a third-party claim, and give the court a copy.
- Article 66An individual debtor is entitled to keep from the estate assets enough for a decent living for itself and its dependents; the court decides this on the trustee's proposal, and it is not included in the proposal.
الفصل الرابع: إجراء إعادة التنظيم المالي: أصول الغيرArticles 67–67
الفصل الرابع: إجراء إعادة التنظيم المالي: قائمة مطالبات الدائنينArticles 68–69
- Article 68The trustee prepares a list of creditors' claims and submits it to the court for approval within 14 days, and notifies within 5 days anyone whose claim it recommended rejecting or referring to an expert.
- Article 69The debtor continues to manage its business during financial reorganization under the trustee's supervision, and at the trustee's request the court may remove its control in cases of negligence, mismanagement or criminal acts.
الفصل الرابع: إجراء إعادة التنظيم المالي: حماية النشاطArticles 70–70
الفصل الرابع: إجراء إعادة التنظيم المالي: حظر التصرف في الأصولArticles 71–72
- Article 71At an interested party's request, the court may annul the debtor's disposal of estate assets outside its usual business in breach of Article 70 and recover the assets, taking into account the rights of good-faith third parties.
- Article 72The trustee may ask the court to replace the security given to a debtor's creditor with equivalent security where this is in the interest of a majority of creditors, without prejudice to the secured creditor's rights.
الفصل الرابع: إجراء إعادة التنظيم المالي: تشكيل لجنة للدائنينArticles 73–74
- Article 73A creditors' committee is formed in the financial reorganization procedure in the cases the Implementing Regulations specify, and they set out its tasks and working procedures.
- Article 74If creditors are numerous and the nature of their debts or rights differs, the debtor in financial reorganization must classify them into classes as the Implementing Regulations specify.
الفصل الرابع: إجراء إعادة التنظيم المالي: مقترح إعادة التنظيم الماليArticles 75–77
- Article 75The article covers preparing the financial restructuring proposal, its content and the trustee's report on it, amending security with equivalent security by court approval, and filing it and setting the voting date.
- Article 76Only a creditor whose rights the proposal affects and who has an approved accepted claim may vote on the proposal, as may an owner whose rights it affects.
- Article 77After the trustee's approval, the debtor must notify accepted creditors and affected owners of the voting date at least 21 days ahead, with the proposal made available and the date announced.
الفصل الرابع: إجراء إعادة التنظيم المالي: حقوق التصويتArticles 78–78
الفصل الرابع: إجراء إعادة التنظيم المالي: نصاب تصويت الدائنينArticles 79–79
الفصل الرابع: إجراء إعادة التنظيم المالي: التصديق على المقترحArticles 80–81
- Article 80The article sets out the two cases in which the court confirms a financial restructuring proposal that meets the fairness criteria, and a dissenting creditor's right to object at the confirmation hearing.
- Article 81A financial restructuring proposal may not include anything that contravenes the provisions of the law and relevant laws on set-off and priority of debts, and any contravening act is void.
الفصل الرابع: إجراء إعادة التنظيم المالي: بيع الأصول المضمونةArticles 82–82
الفصل الرابع: إجراء إعادة التنظيم المالي: نشر وتسجيل التصديق على المقترحArticles 83–83
الفصل الرابع: إجراء إعادة التنظيم المالي: الإشراف على تنفيذ الخطةArticles 84–85
- Article 84The trustee supervises implementation of the plan from confirmation until the procedure ends, and the debtor submits a report every 3 months, which the trustee reviews and submits to the court and creditors within 30 days.
- Article 85The article sets out the acts requiring the trustee's written approval from confirmation of the proposal until the financial restructuring procedure ends.
الفصل الرابع: إجراء إعادة التنظيم المالي: تنفيذ الخطةArticles 86–86
الفصل الرابع: إجراء إعادة التنظيم المالي: إنهاء الإجراءArticles 87–90
- Article 87The article lists seven cases in which the court ends the financial restructuring procedure, on the request of the debtor, the trustee, a creditor or an interested party, or where confirmation is refused.
- Article 88A judgment ending the financial restructuring procedure does not relieve the guarantor of the plan's implementation of its obligations, and no creditor must return what it received from the debtor before the ending.
- Article 89The trustee must file the judgment ending the financial restructuring in the bankruptcy register, which ends the trustee's duties, and the Implementing Regulations specify what it does with the information and documents it holds.
- Article 90The court opens liquidation or administrative liquidation after financial restructuring ends if the debtor is distressed or bankrupt, the procedure's conditions are met, and the ending was for specified grounds.
الفصل الرابع: إجراء إعادة التنظيم المالي: الإحالاتArticles 91–91
الفصل الخامس: إجراء التصفية: طلب افتتاح إجراء التصفيةArticles 92–95
- Article 92The article allows the debtor, a creditor or the competent authority to ask the court to open the liquidation procedure if the debtor is distressed or bankrupt.
- Article 93The article requires that a liquidation request be accompanied by the information and documents the Implementing Regulations specify to be registered, and sets special conditions where one or more creditors file it.
- Article 94A creditor's request to open liquidation is not registered if the debtor disputed the debt before the request, and filing it despite proof of the dispute is an abuse of the procedure.
- Article 95The article governs notifying the debtor or the creditors of a liquidation request, the right to object, and the option to request an alternative procedure that preserves the debtor's business.
الفصل الخامس: إجراء التصفية: إجراءات تحفظيةArticles 96–96
الفصل الخامس: إجراء التصفية: تعليق المطالباتArticles 97–98
- Article 97The article provides that registering a liquidation request or the judgment opening it suspends claims and voids acts contrary to that, with exceptions for the secured creditor and cases the court assesses.
- Article 98The article prevents anyone other than the court from taking any legal action, during the suspension of claims, against a party jointly liable with the debtor who gave personal or in rem security for its obligation.
الفصل الخامس: إجراء التصفية: افتتاح الإجراءArticles 99–99
الفصل الخامس: إجراء التصفية: إدارة أمين التصفية لنشاط المدينArticles 100–102
- Article 100The article bars the debtor from managing its business as soon as the trustee is appointed, with the trustee taking its place, and voids the debtor's acts concerning bankruptcy estate assets after the appointment.
- Article 101No security created during the liquidation procedure is valid unless the creditors voted in favor under Article 108 and the court approved it.
- Article 102Opening the liquidation leads to the start of liquidating the bankruptcy estate assets, carried out by the trustee, except what the court approves an individual debtor keeping for the living of the debtor and dependents.
الفصل الخامس: إجراء التصفية: بيع الأصولArticles 103–107
- Article 103The trustee sells the bankruptcy estate assets at the same time as verifying claims, and may stop verifying, with the court's approval, if expenses and secured debts exhaust the proceeds.
- Article 104Once liquidation is opened, the trustee may take what it considers appropriate to sell the estate assets at the best price, even all at once, depositing the proceeds in a special current account.
- Article 105The article provides that the court determines which bankruptcy estate assets must be advertised before they are sold, as the Implementing Regulations specify.
- Article 106If the trustee intends to sell an asset worth more than a quarter of the estate's value, it must call the creditors to vote or notify the creditors' committee, and provide the necessary information.
- Article 107The article bars the creditor, debtor, owner, their relatives, the debtor's partners and employees, and the trustee and its relatives from bidding to buy bankruptcy estate assets except at a public auction.
الفصل الخامس: إجراء التصفية: حقوق التصويتArticles 108–113
- Article 108The trustee must call known creditors to a voting meeting where it considers their approval necessary, and a decision is valid by a majority of the value of the claims of those voting.
- Article 109The article limits voting in the Article 108 cases to holders of undisputed claims, and allows the court, after hearing the trustee's opinion, to let holders of disputed claims vote.
- Article 110Where liquidation is opened under Article 90, claims filed in the financial restructuring are treated as filed automatically in the liquidation, less what the debtor paid the creditor.
- Article 111The article requires a creditor to deduct what the debtor's guarantor or another person paid from its claim filed with the trustee, and allows the guarantor or other person to file a claim for what it paid.
- Article 112The article governs claims filed after the 90 days in Article 56 and before the final distribution, and stops the claimant from objecting to earlier distributions.
- Article 113The article makes undue debts that are established against the debtor payable and due as soon as the liquidation procedure is opened.
الفصل الخامس: إجراء التصفية: عقود العملArticles 114–114
الفصل الخامس: إجراء التصفية: التقاريرArticles 115–115
الفصل الخامس: إجراء التصفية: التوزيع على الدائنينArticles 116–119
- Article 116The article governs the trustee's decision to distribute the proceeds of selling the estate assets to creditors, notice of it, objecting to it, and reserving amounts for debts in court dispute.
- Article 117The article governs the right of a creditor who files its claim after some distributions or after the final distribution, and the limits of what it can obtain.
- Article 118The article allows the trustee, by a decision after the creditors approve under Article 108, to distribute non-cash assets to one or more creditors against their claims at their estimated value under an approved valuation.
- Article 119The article requires the trustee to return to the debtor whatever remains of the liquidation proceeds after all its debts are paid, and allows it, at the debtor's request, to ask to postpone ending the liquidation after the creditors are satisfied.
الفصل الخامس: إجراء التصفية: مسؤولية الملاكArticles 120–120
الفصل الخامس: إجراء التصفية: إنهاء الإجراءArticles 121–125
- Article 121The article requires the liquidation trustee to ask the court to end the procedure once sales, lawsuits and the final distribution are complete, after notifying creditors, with objections allowed within 14 days.
- Article 122The article sets out two cases in which the court ends the liquidation procedure at the trustee's request, allows it without a hearing, and provides for dissolving a debtor with legal personality.
- Article 123The article requires the court to open administrative liquidation and refer the papers to the Bankruptcy Committee if it ended the liquidation because the sale proceeds were insufficient for its expenses.
- Article 124The article requires the trustee to file the judgment ending the liquidation in the bankruptcy register and the commercial register, if any, and to strike off the debtor's registration in the commercial register.
- Article 125The article governs removing an individual debtor's name from the bankruptcy register 30 days after the liquidation ends, and the continuation of its remaining debts unless the creditors release it.
الفصل الخامس: إجراء التصفية: الإحالاتArticles 126–126
الفصل السادس: إجراء التسوية الوقائية لصغار المدينين: الهدفArticles 127–128
- Article 127The article states that the aim of the protective settlement for small debtors is to let a small debtor agree with its creditors on settling its debts through simple, low-cost procedures while it keeps managing its business.
- Article 128The article lets a small debtor choose the ordinary protective settlement, and bars it from opening a small debtors' settlement if it was subject to it or to a protective settlement in the preceding 12 months.
الفصل السادس: إجراء التسوية الوقائية لصغار المدينين: الإجراءArticles 129–130
- Article 129The article allows a small debtor that is distressed, bankrupt or expecting distress to issue a decision opening the small debtors' protective settlement and file it with its proposal in the bankruptcy register.
- Article 130The article requires a small debtor to call the owners to vote on the proposal if it affects their rights, at least 21 days before the voting date and before the creditors vote.
الفصل السادس: إجراء التسوية الوقائية لصغار المدينين: تعليق المطالباتArticles 131–133
- Article 131The article lets a small debtor ask the court to suspend claims for no more than 90 days, and explains when that period ends.
- Article 132The article governs the form of the request to suspend claims and its attachments, and allows the court to ask for supporting documents, including a statement that creditor approval is likely.
- Article 133After claims are suspended, the article bars bankruptcy requests and action against estate assets and voids contrary acts, excepts secured debts, and requires any excess to be returned within 3 days.
الفصل السادس: إجراء التسوية الوقائية لصغار المدينين: الموافقة على المقترحArticles 134–134
الفصل السادس: إجراء التسوية الوقائية لصغار المدينين: إيداع قرار الدائنينArticles 135–135
الفصل السادس: إجراء التسوية الوقائية لصغار المدينين: أثر الموافقة على المقترحArticles 136–136
الفصل السادس: إجراء التسوية الوقائية لصغار المدينين: الاعتراض على الخطةArticles 137–138
- Article 137The article lets a creditor who voted against the plan object before the court within 14 days of the vote result being filed, if the creditor reasonably believes it harms them and breaches the fairness standards.
- Article 138The article lets the court, on an objection, suspend the plan's effect for no more than 14 days, during which it rules the plan void or rejects the objection, without requiring creditors to return what they received.
الفصل السادس: إجراء التسوية الوقائية لصغار المدينين: إنهاء الإجراءArticles 139–140
- Article 139The article lists seven cases in which the court ends the protective settlement procedure for small debtors, including completed implementation of the plan, failure of the quorum, and voidness of the plan.
- Article 140The article requires the court to open the appropriate bankruptcy procedure for a distressed or bankrupt small debtor whose settlement was ended on specified grounds and where the new procedure's conditions are met.
الفصل السادس: إجراء التسوية الوقائية لصغار المدينين: الإحالاتArticles 141–141
الفصل السابع: إجراء إعادة التنظيم المالي لصغار المدينين: الهدفArticles 142–143
- Article 142The article states that financial reorganization for small debtors aims to facilitate an agreement between the small debtor and its creditors to reorganize its business financially, through simple procedures under the trustee's supervision.
- Article 143The article lets the small debtor, a creditor or the competent authority request ordinary financial reorganization instead of the small debtors' procedure, and bars opening it within 12 months of a prior one.
الفصل السابع: إجراء إعادة التنظيم المالي لصغار المدينين: الإجراءArticles 144–146
- Article 144The article requires, for opening financial reorganization for small debtors, that the small debtor be bankrupt, distressed, or likely to suffer financial disturbances that raise fear of its distress.
- Article 145The article regulates two ways of opening financial reorganization for small debtors: a decision by the debtor or competent authority after agreeing with a trustee, effective only on judicial filing, or a creditor's request to the court.
- Article 146The article makes the trustee agreed with the one who carries out the judicial filing to open financial reorganization for small debtors, and requires the court to keep a register of its information and documents.
الفصل السابع: إجراء إعادة التنظيم المالي لصغار المدينين: تعليق المطالباتArticles 147–147
الفصل السابع: إجراء إعادة التنظيم المالي لصغار المدينين: افتتاح الإجراءArticles 148–148
الفصل السابع: إجراء إعادة التنظيم المالي لصغار المدينين: تعيين أمين إعادة التنظيم المالي لصغار المدينينArticles 149–149
الفصل السابع: إجراء إعادة التنظيم المالي لصغار المدينين: الإعلان عن إجراء إعادة التنظيم المالي لصغار المدينينArticles 150–152
- Article 150The article requires the trustee to announce the opening of financial reorganization for small debtors and notify known creditors within 5 days, inviting claims within no more than 60 days.
- Article 151The article requires every creditor whose debt arose before financial reorganization for small debtors opened to submit its claim to the trustee within the set period, with documents and a statement of any security.
- Article 152The article regulates the small debtor preparing the reorganization proposal with the trustee's help, the trustee's report, amending security with court approval, and setting the vote date.
الفصل السابع: إجراء إعادة التنظيم المالي لصغار المدينين: التصويتArticles 153–153
الفصل السابع: إجراء إعادة التنظيم المالي لصغار المدينين: النصاب المطلوب في التصويتArticles 154–155
- Article 154The article provides that the proposal is accepted by unanimous secured creditors and by unsecured creditors representing two-thirds of voting debts, including more than half of unrelated parties' debts.
- Article 155The article makes an accepted proposal effective from the date the vote result is filed with the court, and a plan binding on the small debtor, creditors and owners, with the filing recorded in the bankruptcy register.
الفصل السابع: إجراء إعادة التنظيم المالي لصغار المدينين: إنهاء الإجراءArticles 156–158
- Article 156The article lists seven cases in which the court ends financial reorganization for small debtors, on the request of the debtor, the trustee, a creditor or an interested party.
- Article 157The article provides that ending financial reorganization for small debtors does not release the plan's guarantor from its obligations and does not require a creditor to return what it received before the ending.
- Article 158The article lets the court, of its own motion or at an interested party's request, open liquidation for small debtors or administrative liquidation after reorganization ends, on three conditions.
الفصل السابع: إجراء إعادة التنظيم المالي لصغار المدينين: الإحالاتArticles 159–159
الفصل الثامن: إجراء التصفية لصغار المدينين: الهدفArticles 160–162
- Article 160The article states that liquidation for small debtors aims to sell the bankruptcy estate's assets and distribute the proceeds to creditors within a reasonable period, through simple low-cost procedures under the trustee's management.
- Article 161The article allows the small debtor, a creditor or the competent authority to request opening the liquidation procedure instead of the liquidation procedure for small debtors.
- Article 162The article requires, for opening liquidation for small debtors, that the small debtor be distressed or bankrupt, that its business cannot continue, and that its assets cover the procedure's expenses.
الفصل الثامن: إجراء التصفية لصغار المدينين: افتتاح الإجراءArticles 163–165
- Article 163The article sets how liquidation for small debtors is opened and how the court rules on a creditor's request to open, reject or postpone, and notifies an absent debtor of the ruling.
- Article 164The article requires the trustee to ask the court to end liquidation for small debtors as soon as it learns that proceeds from selling the estate's assets will not cover the procedure's expenses.
- Article 165The article requires the trustee to ask the court to end liquidation for small debtors within 12 months of opening, once sale and distribution are complete, with extension possible and a 14-day right to object.
الفصل الثامن: إجراء التصفية لصغار المدينين: الإحالاتArticles 166–166
الفصل التاسع: إجراء التصفية الإدارية: الهدفArticles 167–167
الفصل التاسع: إجراء التصفية الإدارية: شروط افتتاح الإجراءArticles 168–168
الفصل التاسع: إجراء التصفية الإدارية: تعليق المطالباتArticles 169–171
- Article 169The article provides that registering or opening administrative liquidation suspends claims until the request is rejected or the procedure ends, voids contrary acts, and regulates recovery and lifting the suspension.
- Article 170The article sets how administrative liquidation is opened, the court hearing within 40 days of registering the request, the cases of opening, rejection and postponement, and notice to the debtor.
- Article 171The article requires appointing the Bankruptcy Committee to manage administrative liquidation, strips the debtor of control on its appointment, voids its later dealings in its assets, and requires the committee to notify it of matters concerning it.
الفصل التاسع: إجراء التصفية الإدارية: الإعلان عن التصفية الإدارية وتقديم المطالبات إلى لجنة الإفلاسArticles 172–177
- Article 172The article requires the Bankruptcy Committee to announce the ruling opening administrative liquidation and notify known creditors within 5 days, inviting claims within no more than 60 days.
- Article 173The article requires the Bankruptcy Committee to prepare the list of claims as specified by the Implementing Regulations, and to be bound by the approved creditors' list, if any, when administrative liquidation follows another procedure's ending.
- Article 174The article requires the Bankruptcy Committee to refer the matter to the relevant authority if it sees a need for further verification because of suspicion of a crime or violation in any claim or act.
- Article 175The article allows the court, at the Bankruptcy Committee's request, to consider ending the contracts of the debtor's workers connected with its business in accordance with the relevant laws.
- Article 176The article makes debts not yet due that are established against the debtor payable and due immediately on opening administrative liquidation.
- Article 177The article empowers the Bankruptcy Committee to ask the court, the debtor, a creditor or anyone else for any information or document relevant to the procedure, and requires it to prepare an inventory of the estate's assets.
الفصل التاسع: إجراء التصفية الإدارية: بيع الأصولArticles 178–178
الفصل التاسع: إجراء التصفية الإدارية: إنهاء إجراء التصفية الإداريةArticles 179–181
- Article 179The article regulates ending administrative liquidation by a Bankruptcy Committee decision within 12 months with a possible 90-day extension, dissolving a legal-entity debtor, and removing its name from the bankruptcy register after 30 days.
- Article 180The article refers to the Implementing Regulations the procedures to follow if it appears during administrative liquidation that the sale proceeds are enough for the expenses of liquidation or liquidation for small debtors.
- Article 181The article explains the effect of removing an individual debtor's name from the bankruptcy register: its liability for remaining debt is released only by creditors' discharge, and it is treated as bankrupt toward those creditors for 24 months.
الفصل العاشر: التمويل: نطاق التطبيقArticles 182–182
الفصل العاشر: التمويل: التمويل في إجراءات التسوية الوقائية وإعادة التنظيم الماليArticles 183–183
الفصل العاشر: التمويل: أحكام التمويل المضمونArticles 184–184
الفصل العاشر: التمويل: التمويل غير المضمون في إجراءات التسوية الوقائية وإعادة التنظيم الماليArticles 185–185
الفصل العاشر: التمويل: أحكام التمويل المضمون أو غير المضمون في إجراء التصفيةArticles 186–187
- Article 186The article provides that the court approves financing in liquidation and liquidation for small debtors at the trustee's request with an expert's report, when necessary to preserve asset value, and after creditors' approval.
- Article 187The article provides that any secured financing the court approves is considered priority financing.
الفصل الحادي عشر: المقاصة والديون التبادليةArticles 188–190
- Article 188The article prohibits automatic set-off after protective settlement and financial reorganization (and their small debtor versions) open, and allows the proposal to provide for set-off of specified mutual debts.
- Article 189The article provides that the set-off prohibition does not affect calculating a creditor's claim for voting on the proposal, which is counted at what remains after deducting what the debtor is entitled to.
- Article 190The article allows, as an exception to the suspension of claims, a creditor to claim its debt when the debtor claims from it, paying only the difference, and to vote on any remainder owed to it.
الفصل الحادي عشر: المقاصة التلقائية عند التصفيةArticles 191–191
الفصل الحادي عشر: الديون المستبعدةArticles 192–192
الفصل الحادي عشر: إثبات رصيد الدينArticles 193–193
الفصل الحادي عشر: الديون بعملة أجنبيةArticles 194–194
الفصل الثاني عشر: أولوية الديونArticles 195–198
- Article 195The article gives the bankruptcy trustee's fees and expenses, the expert's, and the costs of selling the estate's assets priority over debts in liquidation, and requires them to be paid before distribution to creditors.
- Article 196The article sets the order of priority of debts in liquidation and liquidation for small debtors, from debts secured by property to unsecured government dues, without prejudice to Article 195.
- Article 197The article requires any surplus from selling an asset securing a debt to be deposited in the estate's account, and treats the part of the secured debt the sale proceeds do not cover as an unsecured debt.
- Article 198The article requires the proceeds of selling the estate's assets to be distributed among creditors of the same priority, and by pro rata sharing if the proceeds do not cover their debts.
الفصل الثاني عشر: توزيع الديون ذات الأولوية في غير إجراء التصفيةArticles 199–199
الفصل الثالث عشر: العقوبات والتعاملات القابلة للإلغاء: نطاق التطبيقArticles 200–209
- Article 200The article lists acts by an individual debtor, a debtor's managers, board members, officers and others that violate the law if committed before or during bankruptcy and harm others.
- Article 201The article lists acts that violate the Bankruptcy Law if committed by any person before bankruptcy and leading to it, or during it, and harming the parties' rights.
- Article 202The article lists acts by a creditor, or someone claiming to be one, that violate the law, such as fraudulent claims, harmful arrangements with the debtor and abuse of procedures.
- Article 203The article sets the penalty for the acts criminalized in Articles 200, 201 and 202: imprisonment up to 5 years and a fine up to SAR 5 million or either, with possible bans on managing establishments.
- Article 204The article requires the court to notify the Bankruptcy Committee at once of judgments under this chapter, and the Committee to keep a register of the bans issued under Article 203 whose operative part is public.
- Article 205The article allows the court, when considering the penalties in Article 203, to order at an interested party's request the nullity of the transaction, recovery of the debtor's assets, or compensation.
- Article 206The article requires the bankruptcy trustee, if he suspects the debtor or any of its creditors of any of the acts criminalized by the law, to go to the competent authority.
- Article 207The article punishes anyone who violates the Bankruptcy Law or its Implementing Regulations with a fine of up to SAR 500,000, without prejudice to Article 203.
- Article 208The article makes investigation and prosecution of acts criminalized under the Bankruptcy Law a matter for the Public Prosecution, and imposing the penalties a matter for the court.
- Article 209The article doubles the penalties under the Bankruptcy Law in case of repeat offense, defining a repeat offender as one who offends again within 3 years of completing the sentence for a final judgment.
الفصل الثالث عشر: العقوبات والتعاملات القابلة للإلغاء: التعاملات القابلة للإلغاءArticles 210–212
- Article 210The article allows any interested party to object before the court to specified transactions by the debtor made within 12 months before the opening with an unrelated party, or 24 months with a related party.
- Article 211The article requires the court, on an objection under Article 210, to annul the debtor's transaction and its effects, with recovery of assets, security or sums, except in a specified case.
- Article 212The article protects rights acquired by good-faith third parties from the effects of a judgment under Article 211, unless they were a party to the debtor's transaction.
الفصل الثالث عشر: العقوبات والتعاملات القابلة للإلغاء: النفقات والمصروفاتArticles 213–213
الفصل الرابع عشر: ترتيبات الضمانات والمقاصة المرتبطة بالمعاملات الماليةArticles 214–214
الفصل الخامس عشر: حق الاعتراض على الأحكام والقرارات: حق الاعتراضArticles 215–218
- Article 215The article allows any interested party to object before the court within 14 days to acts and decisions of the debtor, creditor, trustee or competent authority, with the judgment final, subject to Article 217.
- Article 216The article allows any interested party to object before the court within 14 days to acts and decisions of the Bankruptcy Committee, except licensing of trustees and experts, with the judgment final, subject to Article 217.
- Article 217The article lists the judgments and decisions that any interested party may object to before the court of appeal, and sets the objection period at 14 days where there is no special provision.
- Article 218The article states that the court of appeal examines the objection and either upholds or overturns the decision, and if it overturns it decides the case with a judgment not subject to appeal by any means.
الفصل السادس عشر: أحكام خاصة بالمدين المتوفىArticles 219–226
- Article 219The article continues a protective settlement or financial reorganization if the debtor dies after it opens, and calls the heirs and creditors to a meeting to unanimously decide on forming a company or requesting liquidation.
- Article 220The article governs the debtor's death after filing an application for protective settlement or financial reorganization and before it is decided, setting the heirs' and creditors' options and when liquidation of the estate is opened.
- Article 221The article governs the debtor's death after an application to open liquidation and before it is decided, allowing heirs and creditors, where the conditions for financial reorganization are met instead, to form a company or request liquidation.
- Article 222The article continues liquidation procedures of all kinds if the debtor dies after they open and before the ruling ending them, with the trustee or the Bankruptcy Committee completing their tasks under the law.
- Article 223The article refers to the Implementing Regulations the procedures for the estate of a bankrupt or distressed debtor who died before an application to open any bankruptcy procedure was filed.
- Article 224The article provides that the company formed by the deceased debtor's heirs under paragraph (1/a) of Articles 219, 220 and 221 is formed in accordance with the relevant laws.
- Article 225The article provides that the burial expenses of the deceased debtor and the related administrative fees are paid before the priority debts.
- Article 226The article refers to the Implementing Regulations the rules for money that comes into a deceased debtor's estate after its liquidation, or after a company is formed under this chapter or that company is liquidated.
الفصل السابع عشر: أحكام ختامية: إنشاء سجل الإفلاس وتحديد أغراضهArticles 227–231
- Article 227The article requires the Bankruptcy Committee to set up a bankruptcy register for what the law provides to be deposited in it, refers its details to the Implementing Regulations, and makes its contents open to the public.
- Article 228The article refers to the Implementing Regulations the way notification and announcement provided for in the Bankruptcy Law are made.
- Article 229The article makes the Ministry responsible for preparing the Implementing Regulations with the relevant bodies for issue by the Council of Ministers, and empowers the competent authority to issue regulations for regulated entities under its supervision.
- Article 230The article repeals Articles 103 to 137 of the Commercial Court Law, the Law of Protective Settlement from Bankruptcy, and any provision that conflicts with the Bankruptcy Law.
- Article 231The article provides for publishing the Bankruptcy Law in the Official Gazette and its coming into force from the date the Implementing Regulations are issued, no later than 180 days from publication.
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