Article 172 of the Saudi Bankruptcy Law

المادة 172 من نظام الإفلاس · الفصل التاسع: إجراء التصفية الإدارية: الإعلان عن التصفية الإدارية وتقديم المطالبات إلى لجنة الإفلاس

The 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.

Official text (Arabic)

This article has not been amended since the law was issued.

1- تعلن لجنة الإفلاس في الوسيلة التي تحددها اللائحة حكم المحكمة بافتتاح إجراء التصفية الإدارية خلال (خمسة) أيام من تاريخ افتتاحه، وتدعو الدائنين إلى تقديم مطالباتهم خلال مدة لا تزيد على (ستين) يوماً من تاريخ الإعلان.

2- تبلغ لجنة الإفلاس -خلال (خمسة) أيام من تاريخ افتتاح الإجراء- الدائنين المعلومين لديها بالحكم، وتدعوهم إلى تقديم مطالباتهم خلال مدة لا تزيد على (ستين) يوماً من تاريخ التبليغ.

3- تودع لجنة الإفلاس نسخة من حكم المحكمة بافتتاح الإجراء في سجل الإفلاس.

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 172 explained in plain English

This article specifies how creditors learn of the opening of administrative liquidation, and the time they have to submit their claims.

1- General announcement: the Bankruptcy Committee announces the court's ruling opening the procedure by the means specified by the Implementing Regulations within 5 days of the date of opening, and invites creditors to submit their claims within a period of no more than 60 days from the date of the announcement.

2- Direct notice: within 5 days of the date of opening, the committee notifies the creditors known to it of the ruling and invites them to submit their claims within a period of no more than 60 days from the date of notice.

3- The bankruptcy register: the committee files a copy of the opening ruling in the bankruptcy register.

Note that the sixty days is a maximum; the committee may set a shorter period in its invitation, and it is counted from the date of the announcement for the general invitation, and from the date of notice for a known creditor.

These duties are among the duties of the Bankruptcy Committee that the court appoints under Article 171. After claims are submitted, the committee prepares a list of them as specified by the Implementing Regulations, as Article 173 provides. A creditor who wants to be sure its claim is sound may consult a lawyer specialized in bankruptcy and commercial matters.

Practical example

A maintenance company in Riyadh is owed amounts by an establishment whose administrative liquidation was opened. A notice reached it from the Bankruptcy Committee 3 days after opening, inviting it to submit its claim within 45 days of the notice, so it must submit it within that period.

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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