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Article 63 of the Saudi Bankruptcy Law

المادة 63 من نظام الإفلاس · الفصل الرابع: إجراء إعادة التنظيم المالي: تقديم المطالبات

The article requires every creditor whose debt arose before the opening of financial reorganization to submit its claim to the trustee within the set period, with its documents and a statement of its value and security.

Official text (Arabic)

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

1- على كل دائن نشأ دينه قبل صدور حكم المحكمة بافتتاح إجراء إعادة التنظيم المالي أن يتقدم إلى الأمين -خلال المدة المحددة في المادة (السادسة والخمسين) من النظام- بأي مطالبة له حالة أو آجلة، أو موقوفة على شرط أو محتملة أو غير ذلك مما قد يكون له قيمة مالية حالية أو مستقبلية، وأن يرفق بمطالبته الوثائق والمعلومات المنصوص عليها في اللائحة وبياناً بقيمة مطالبته في تاريخ حكم المحكمة بافتتاح الإجراء، والدين الذي لم يستحق بعد وموعد استحقاقه، وأي وثيقة أخرى تؤيد مطالبته، كما يجب أن يحدد ما إذا كانت مطالبته مضمونة وطبيعة الضمانات المقدمة لها.

2- إذا لم تكن قيمة المطالبة محددة بدقة وجب على الدائن تقديم المطالبة بقيمة تقديرية، ويتحقق الأمين من تقدير القيمة الفعلية لهذه المطالبة.

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 63 explained in plain English

After the financial reorganization procedure opens, this article requires every creditor whose debt arose before the opening ruling was issued to submit its claim to the trustee within the period set in Article 56 of the Bankruptcy Law. This covers all types of claims:

  • Debts that are due and debts that are deferred.
  • Conditional and contingent debts.
  • Any other right that may have a present or future financial value.

The creditor must attach to its claim:

  • The documents and information that the Implementing Regulations provide.
  • A statement of the value of the claim on the date of the ruling opening the procedure.
  • Any debt that has not yet fallen due and its due date.
  • Any other document supporting the claim.
  • A statement of whether the claim is secured, and the nature of the security provided for it.

If the value of the claim is not precisely determined, the creditor must submit it at an estimated value, and the trustee verifies the estimate of its actual value. Not knowing the exact amount therefore does not justify failing to submit the claim.

The importance of complying with this article appears in Article 64, under which a creditor who did not submit its claim within the set period is excluded from voting on the proposal, unless it establishes to the court before the vote one of the cases set out there. To make sure a claim and its documents are complete, you can consult a lawyer specializing in bankruptcy and commercial cases.

Practical example

A contractor in Riyadh is owed SAR 400,000 by a real estate development company, of which SAR 150,000 has not yet fallen due, and the court then opened financial reorganization for the company. He must submit his claim to the trustee within the period set in Article 56, attaching the contract and invoices and a statement of the value of the claim on the date of the opening ruling, stating the part not yet due and its due date, and whether his claim is secured and the nature of the security.

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 63 of the Saudi Bankruptcy Law

Must I submit my claim if my debt has not yet fallen due?

Yes. The article covers claims that are due and deferred, and the creditor states the debt that has not yet fallen due and its due date.

What do I do if I do not know the exact value of my claim?

The claim is submitted at an estimated value, and the trustee verifies the estimate of its actual value.

To whom is the claim submitted in financial reorganization?

To the trustee within the period set in Article 56 of the Bankruptcy Law, with the documents and information that the Implementing Regulations provide.

What happens to a creditor who does not submit its claim in time?

Under Article 64 it is excluded from voting on the proposal, unless it establishes to the court before the vote one of the cases set out there.

Articles this article refers to

More articles on Creditors' Rights in Bankruptcy

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.