Article 104 of the Saudi Bankruptcy Law
المادة 104 من نظام الإفلاس · الفصل الخامس: إجراء التصفية: بيع الأصول
Once 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.
Official text (Arabic)
This article has not been amended since the law was issued.
دون إخلال بحكم المادة (الثامنة بعد المائة) من النظام، للأمين فور افتتاح إجراء التصفية اتخاذ ما يراه مناسباً لبيع أصول التفليسة بأفضل سعر ممكن بما في ذلك بيع جميع أصول التفليسة دفعة واحدة، على أن تودع حصيلة البيع في حساب جار يفتح لهذا الغرض.
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 104 explained in plain English
This article gives the trustee flexibility in the way the bankruptcy estate assets are sold, with restrictions that protect the creditors.
What the trustee may do:
- Take, as soon as the liquidation procedure is opened, what it considers appropriate to sell the bankruptcy estate assets.
- The aim is to sell at the best possible price.
- Sell all the bankruptcy estate assets at once if it considers that appropriate, such as selling the whole business instead of selling its assets separately.
What it must do: Deposit the sale proceeds in a current account opened for this purpose, so that they are not mixed with other funds.
The restriction: The article begins with the phrase "without prejudice to the provision of Article 108", meaning that the trustee's power to sell does not cancel what that article provides about calling the creditors and voting, so it must be consulted.
This article is connected to Article 103, under which the trustee sells the assets at the same time as verifying claims, and to Article 105, under which the court determines the assets that must be advertised before sale according to the Implementing Regulations. To assess a particular situation, consult a lawyer specializing in bankruptcy and commercial cases.
Practical example
The trustee in the liquidation of a restaurant chain in Jeddah considered that selling its branches together to a single investor would achieve a higher price than selling its equipment separately. He offered them for sale all at once, and deposited the price in a current account he opened specifically for the liquidation proceeds.
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 104 of the Saudi Bankruptcy Law
Can all the assets of a bankrupt company be sold at once?
Yes. The trustee may sell all the bankruptcy estate assets at once if it considers that appropriate to achieve the best possible price, without prejudice to Article 108.
Where are the proceeds of selling the bankruptcy estate assets deposited?
In a current account opened for this purpose.
Articles this article refers to
More articles on Liquidation of the Debtor's Assets
- Article 7
Article 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.
1- مع مراعاة ما ورد في المادة (الرابعة) من النظام، لا يصفى أي شخص بموجب نظام آخر إلا إذا كانت أصوله تكفي لسداد جميع ديونه وكان غير متعثر. 2- إذا تم حل المدين وت
- Article 69
The 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.
1- دون إخلال بصلاحيات ومهمات الأمين، يستمر المدين في إدارة أعماله ونشاطه خلال فترة إجراء إعادة التنظيم المالي تحت إشراف الأمين. 2- إذا ارتكب المدين أو أحد المسؤ
- Article 90
The 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.
تقضي المحكمة -من تلقاء نفسها أو بناء على طلب من ذي مصلحة- بافتتاح إجراء التصفية أو التصفية الإدارية إذا تحققت الشروط الآتية: أ - أن يكون المدين متعثراً أو مفلسا
- Article 92
The 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.
دون الإخلال بأحكام الأنظمة ذات العلاقة، للمدين أو الدائن أو الجهة المختصة التقدم إلى المحكمة بطلب افتتاح إجراء التصفية للمدين إذا كان المدين متعثراً أو مفلساً.
- Article 93
The 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.
1- يشترط لقيد طلب افتتاح إجراء التصفية لدى المحكمة أن يقدم الطلب مرافقاً له المعلومات والوثائق ذات العلاقة، وفقاً لما تحدده اللائحة. 2- لا يقيد طلب دائن أو أكثر
- Article 94
A 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.
لا يقيد طلب الدائن بافتتاح إجراء التصفية إذا كان المدين قد نازع الدائن في الدين قبل تقدم الدائن بالطلب. ويعد طلب الدائن افتتاح الإجراء مع وجود ما يثبت منازعة ال
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.