Article 115 of the Saudi Bankruptcy Law
المادة 115 من نظام الإفلاس · الفصل الخامس: إجراء التصفية: التقارير
The article requires the trustee to give the court a periodic report on the progress of the liquidation at least every 3 months, and gives creditors the right to review it.
Official text (Arabic)
This article has not been amended since the law was issued.
على الأمين تزويد المحكمة كل (ثلاثة) أشهر على الأقل بتقرير دوري عن سير إجراء التصفية، وللدائنين الاطلاع عليه.
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 115 explained in plain English
This article sets up a mechanism of oversight and transparency over the liquidation trustee's work.
The trustee's obligation:
- To provide the court with a periodic report on the progress of the liquidation procedure.
- To do so at least every 3 months; this is a minimum, and the text does not prevent reports being submitted at shorter intervals.
The creditors' right: Creditors may review this report.
The practical benefit is that a creditor waiting for its share of the liquidation proceeds can follow what has been done in selling the assets, verifying claims and the other stages of the procedure, instead of remaining without information until the end of the procedure. These reports also enable the court to follow the trustee's performance.
The article does not specify the content of the report in detail or how creditors review it, and merely establishes the obligation and the right.
It comes after Article 114 on employment contracts, and before Article 116, which governs the decision to distribute the proceeds of selling the assets to the creditors and objecting to it. To assess a particular situation, consult a lawyer specializing in bankruptcy and commercial cases.
Practical example
A finance company in Riyadh has been a creditor of an establishment in liquidation for six months and wants to know what has been sold of the establishment's assets. It is entitled to review the periodic reports the trustee submits to the court at least every 3 months.
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 115 of the Saudi Bankruptcy Law
How often does the liquidation trustee submit its report to the court?
At least every 3 months.
May a creditor review the liquidation trustee's report?
Yes. Creditors may review the periodic report on the progress of the liquidation procedure.
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.