Article 180 of the Saudi Bankruptcy Law
المادة 180 من نظام الإفلاس · الفصل التاسع: إجراء التصفية الإدارية: إنهاء إجراء التصفية الإدارية
The article refers to the Implementing Regulations the procedures to follow if it appears during administrative liquidation that the sale proceeds are enough for the expenses of liquidation or liquidation for small debtors.
Official text (Arabic)
This article has not been amended since the law was issued.
تحدد اللائحة الإجراءات الواجب اتباعها إذا تبين خلال إجراء التصفية الإدارية أن حصيلة بيع أصول التفليسة 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 180 explained in plain English
This article addresses an unexpected situation in administrative liquidation: that it becomes clear during the procedure that the proceeds of selling the bankruptcy estate's assets are enough to meet the expenses of:
- the liquidation procedure, or
- the liquidation procedure for small debtors.
What is the rule? The article does not set the rule itself, but provides that the Implementing Regulations specify the procedures to follow in this case. It is therefore not right to infer from the text of the article alone that the procedure converts automatically into another procedure, or that it continues as it is; the reference for these details is the Implementing Regulations.
Relation to the surrounding articles: Article 179 regulates the usual ending of administrative liquidation by a decision of the Bankruptcy Committee within 12 months of opening, with a possible 90-day extension. Article 181 deals with the effects of removing the name of a debtor who is a natural person from the bankruptcy register.
A creditor who believes the debtor's assets are larger than first estimated may consult a lawyer specialized in bankruptcy and commercial matters to learn what the Implementing Regulations provide in this case.
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 180 of the Saudi Bankruptcy Law
What happens if the debtor's assets turn out to be enough for the liquidation expenses during administrative liquidation?
The Implementing Regulations specify the procedures to follow in this case, and the article itself does not detail them.
Does administrative liquidation convert automatically into ordinary liquidation?
The article does not provide for that, but refers the specification of the procedures to follow to the Implementing Regulations.
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 167
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.
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.
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.