Article 167 of the Saudi Bankruptcy Law
المادة 167 من نظام الإفلاس · الفصل التاسع: إجراء التصفية الإدارية: الهدف
The article states that administrative liquidation aims to sell bankruptcy estate assets whose sale is not expected to produce proceeds enough for the expenses of liquidation or small debtor liquidation.
Official text (Arabic)
This article has not been amended since the law was issued.
يهدف إجراء التصفية الإدارية إلى بيع أصول التفليسة التي لا يتوقع أن ينتج عن بيعها حصيلة تكفي للوفاء بمصروفات إجراء التصفية أو إجراء التصفية لصغار المدينين.
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 167 explained in plain English
This article sets out the aim of the administrative liquidation procedure, which is the procedure designed for cases where the debtor's assets are few.
What does the procedure do? It sells the assets of the bankruptcy estate.
What distinguishes it? That these assets are not expected to produce sale proceeds enough to meet the expenses of:
- the liquidation procedure, or
- the liquidation procedure for small debtors.
If the assets cannot bear the expenses of the other liquidation procedures, this procedure is the route available to bring the debtor's situation to an end and sell whatever assets it has.
Relation to the surrounding articles: Article 166 sets out the provisions that apply to liquidation for small debtors, while Article 168 specifies who may request opening administrative liquidation, namely the debtor or the competent authority, if the debtor is distressed or bankrupt and its assets are not enough for the expenses of liquidation or liquidation for small debtors.
This article is a statement of the aim and does not itself create detailed obligations. To determine the most suitable procedure for the situation of a particular business, it is advisable to consult a lawyer specialized in bankruptcy and commercial matters.
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 167 of the Saudi Bankruptcy Law
What is the aim of administrative liquidation?
To sell the assets of the bankruptcy estate whose sale is not expected to produce proceeds enough to meet the expenses of the liquidation procedure or the liquidation procedure for small debtors.
When is the route administrative liquidation rather than ordinary liquidation?
When the proceeds of selling the assets are not expected to be enough for the expenses of the liquidation procedure or the liquidation procedure for small debtors.
More articles on Administrative Liquidation
- 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 122
The 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.
1- تقضي المحكمة بإنهاء إجراء التصفية في الحالتين الآتيتين: أ- إذا تقدم الأمين بطلب إنهاء الإجراء لعدم كفاية حصيلة بيع أصول التفليسة للوفاء بمصروفات إجراء التصفي
- Article 123
The 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.
تقضي المحكمة بافتتاح إجراء التصفية الإدارية للمدين إذا قضت بإنهاء الإجراء بموجب الفقرة (1/أ) من المادة (الثانية والعشرين بعد المائة) من النظام، وتحيل أوراق الدع
- Article 158
The 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.
تقضي المحكمة -من تلقاء نفسها أو بناء على طلب ذي مصلحة - بافتتاح إجراء التصفية لصغار المدينين أو التصفية الإدارية إذا تحققت الشروط الآتية: أ- أن يكون المدين الصغ
- Article 164
The 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.
يلتزم الأمين بتقديم طلب إلى المحكمة لإنهاء إجراء التصفية لصغار المدينين فور علمه بعدم كفاية حصيلة بيع أصول التفليسة للوفاء بمصروفات إجراء التصفية لصغار المدينين
- Article 168
The article lets the debtor or the competent authority request administrative liquidation for a distressed or bankrupt debtor whose assets do not cover liquidation expenses, and regulates notifying the debtor and its objection.
1- للمدين أو الجهة المختصة التقدم إلى المحكمة بطلب افتتاح إجراء التصفية الإدارية إذا كان المدين متعثراً أو مفلساً وكانت أصوله لا تكفي للوفاء بمصروفات إجراء التص
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.