Article 150 of the Saudi Bankruptcy Law
المادة 150 من نظام الإفلاس · الفصل السابع: إجراء إعادة التنظيم المالي لصغار المدينين: الإعلان عن إجراء إعادة التنظيم المالي لصغار المدينين
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يعلن الأمين عن افتتاح إجراء إعادة التنظيم المالي لصغار المدينين خلال (خمسة) أيام من تاريخ افتتاحه، ويودع في سجل الإفلاس ما يفيد بافتتاح الإجراء، ويدعو الدائنين إلى تقديم مطالباتهم خلال مدة لا تزيد على (ستين) يوماً من تاريخ الإعلان، وفقاً لما تحدده اللائحة.
2- يبلغ الأمين الدائنين المعلومين لديه بافتتاح الإجراء خلال (خمسة) أيام من تاريخ افتتاحه، ويدعوهم إلى تقديم مطالباتهم خلال مدة لا تزيد على (ستين) يوماً من تاريخ التبليغ.
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 150 explained in plain English
This article specifies how creditors learn of the opening of the financial reorganization procedure for small debtors, and the time they have to submit their claims.
1- General announcement: within 5 days of the date of opening, the trustee must:
- announce the opening of the procedure.
- file a record of the opening in the bankruptcy register.
- invite creditors to submit their claims within a period of no more than 60 days from the date of the announcement, as specified by the Implementing Regulations.
2- Specific notice to known creditors: the trustee notifies the creditors known to it of the opening within 5 days of its date, and invites them to submit their claims within a period of no more than 60 days from the date of notice.
So there are two parallel routes: a general announcement addressed to all creditors, and direct notice to those the trustee knows. Note that the sixty days is a maximum, and that its start differs by route: from the date of the announcement in the first, and from the date of notice in the second.
Article 151 requires every creditor whose debt arose before the procedure was opened to submit to the trustee within the specified period any claim it has, whether due, deferred, conditional or contingent, with the documents specified by the Implementing Regulations and a statement of its value and whether it is secured, with an estimated value if it is not precisely determined. Article 149 regulates appointing the trustee and filing a record of the appointment in the bankruptcy register. For a particular situation, it is advisable to consult a lawyer specialized in bankruptcy and commercial matters.
Practical example
A building materials supplier in Dammam received a notice from the trustee in the financial reorganization of a small contracting establishment it deals with, informing him of the opening of the procedure and inviting him to submit his claim. The supplier took care to submit his claim with his invoices and documents to the trustee within the period set in the invitation, which is no more than 60 days from the date of notice.
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 150 of the Saudi Bankruptcy Law
How long do creditors have to submit claims in financial reorganization for small debtors?
A period of no more than 60 days, starting from the date of the announcement for the general invitation, and from the date of notice for known creditors.
When does the trustee announce the opening of the procedure?
Within 5 days of its opening, together with filing a record of the opening in the bankruptcy register.
Does the trustee notify creditors directly?
Yes. The trustee notifies the creditors known to it of the opening within 5 days of its date and invites them to submit their claims.
More articles on Small Debtor Bankruptcy Procedures
- Article 102
Opening 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.
1- يترتب على افتتاح إجراء التصفية البدء في تصفية أصول التفليسة. 2- يتولى الأمين تصفية أصول التفليسة عدا ما وافقت المحكمة على احتفاظ المدين ذي الصفة الطبيعية به
- Article 127
The 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.
يهدف إجراء التسوية الوقائية لصغار المدينين إلى تمكين المدين الصغير من التوصل إلى اتفاق مع دائنيه لتسوية ديونه خلال فترة معقولة عبر إجراءات يسيرة بتكلفة منخفضة و
- Article 128
The 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.
1- للمدين الصغير طلب افتتاح إجراء التسوية الوقائية بدلاً من افتتاح إجراء التسوية الوقائية لصغار المدينين. 2- لا يجوز للمدين افتتاح إجراء التسوية الوقائية لصغار
- Article 129
The 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.
1- للمدين الصغير إذا كان يتوقع مواجهة اضطرابات مالية يخشى معها تعثره أو كان متعثراً أو مفلساً، أن يصدر قراراً بافتتاح إجراء التسوية الوقائية لصغار المدينين وفق
- Article 130
The 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.
إذا تضمن المقترح ما يؤثر في حقوق الملاك، فعلى المدين الصغير دعوتهم إلى التصويت على المقترح قبل حلول موعد التصويت بـ(واحد وعشرين) يوماً على الأقل وفقاً لما تنص ع
- Article 131
The article lets a small debtor ask the court to suspend claims for no more than 90 days, and explains when that period ends.
1- للمدين الصغير أن يطلب من المحكمة -خلال المدة من افتتاح إجراء التسوية الوقائية لصغار المدينين إلى موافقة الدائنين على المقترح- تعليق المطالبات لمدة لا تزيد عل
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.