Article 67 of the Saudi Bankruptcy Law
المادة 67 من نظام الإفلاس · الفصل الرابع: إجراء إعادة التنظيم المالي: أصول الغير
An owner of assets in the debtor's possession or held by it must give the trustee information about them, and may ask the court to recover them by proving ownership.
Official text (Arabic)
This article has not been amended since the law was issued.
على من يملك أصولاً تقع في حيازة المدين أو محجوزة لديه تزويد الأمين بمعلومات تفصيلية عنها، وله تقديم طلب إلى المحكمة لاسترداد تلك الأصول مرافقاً له ما يثبت ملكيته لها، وللأمين أن يبدي للمحكمة رأيه في هذا الشأن.
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 67 explained in plain English
Assets that the debtor does not own may be in its possession, such as goods deposited with it or leased equipment. This article addresses the position of the owners of such assets during the financial reorganization procedure.
- Duty of disclosure: Whoever owns assets that are in the debtor's possession or held by it must give the trustee detailed information about them.
- Right of recovery: The owner may submit a request to the court to recover those assets, attaching what proves its ownership of them.
- The trustee's opinion: The trustee may state its opinion to the court on the matter.
The route the article lays out for recovery is therefore to submit a request to the court, and the owner bears the burden of providing what proves its ownership. The article does not set a period for submitting the request, nor what the court rules in each case.
This provision is linked to nearby articles governing the debtor's assets, including Article 66, which allows a debtor who is a natural person to keep from the estate assets enough for a decent living for itself and its dependents, and Article 68, which governs the list of creditors' claims that the trustee prepares.
The owner should gather its ownership documents early, such as contracts and invoices, and consult a lawyer specializing in bankruptcy and commercial cases before submitting its request.
Practical example
An equipment rental company in Riyadh leased cranes to a contracting company for which a financial reorganization procedure was opened. The rental company must give the trustee detailed information about the cranes, and it may submit a request to the court to recover them, attaching the lease contract and what proves its ownership, and the trustee may state its opinion to the court on the request.
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 67 of the Saudi Bankruptcy Law
How do I recover my assets that are with a company in financial reorganization?
You submit a request to the court to recover them, attaching what proves your ownership of them, and you must give the trustee detailed information about them.
Must I tell the trustee about my assets that are with the debtor?
Yes. The article requires whoever owns assets in the debtor's possession or held by it to give the trustee detailed information about them.
Does the trustee have a role in the recovery request?
The trustee may state its opinion to the court on the request.
More articles on Financial Reorganization
- Article 41
After a protective settlement ends, the court, on its own initiative or at an interested party's request, opens the appropriate bankruptcy procedure if three conditions are met together.
تقضي المحكمة -من تلقاء نفسها أو بناء على طلب ذي مصلحة- بافتتاح إجراء الإفلاس المناسب إذا تحققت الشروط الآتية: أ- أن يكون المدين متعثراً أو مفلساً. ب- استيفاء شر
- Article 42
The article states who may request the opening of financial reorganization and its three cases, and bars the request if the debtor underwent this procedure in the previous 12 months.
1- دون الإخلال بأحكام الأنظمة ذات العلاقة، للمدين أو الدائن أو الجهة المختصة التقدم إلى المحكمة بطلب افتتاح إجراء إعادة التنظيم المالي للمدين في أي من الحالات ا
- Article 43
A request to open the financial reorganization procedure is filed with the court after submission, accompanied by the relevant information and documents as the Implementing Regulations specify.
يقيد طلب افتتاح إجراء إعادة التنظيم المالي لدى المحكمة بعد تقديمه مرافقاً له المعلومات والوثائق ذات العلاقة، وفقاً لما تحدده اللائحة.
- Article 44
If someone other than the debtor submits a financial reorganization request, the court notifies the debtor within 5 days, and the debtor may object at the hearing in three cases.
إذا تقدم غير المدين بطلب افتتاح إجراء إعادة التنظيم المالي، فعلى المحكمة تبليغ المدين به خلال مدة لا تزيد على (خمسة) أيام من تاريخ تقديمه، وللمدين الاعتراض على
- Article 45
The debtor, owner, manager, officer, board member and auditor are exempted from the Companies Law provisions on a company's losses reaching a specified percentage, as the Implementing Regulations specify.
يعفى المدين أو المالك أو المدير أو المسؤول أو عضو مجلس الإدارة أو مراجع الحسابات من تطبيق أحكام نظام الشركات فيما يخص بلوغ خسائر الشركة نسبة محددة في ذلك النظام
- Article 46Amended by M/89
Filing a financial reorganization request or opening the procedure stays claims for 180 days, extendable by up to 180 days, with cases for an early end.
1- يترتب على قيد طلب افتتاح إجراء إعادة التنظيم المالي أو افتتاحه، تعليق المطالبات لمدة (مائة وثمانين) يوماً، وللمحكمة من تلقاء نفسها، أو بناءً على طلب الأمين أ
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.