Article 86 of the Saudi Bankruptcy Law
المادة 86 من نظام الإفلاس · الفصل الرابع: إجراء إعادة التنظيم المالي: تنفيذ الخطة
When the plan has been fully implemented, the trustee must ask the court to end the financial restructuring after notifying creditors, and any interested party may object within 14 days of the request being filed.
Official text (Arabic)
This article has not been amended since the law was issued.
يلتزم الأمين عند اكتمال تنفيذ الخطة بتقديم طلب إلى المحكمة للحكم بإنهاء إجراء إعادة التنظيم المالي مرافقاً له المعلومات والوثائق التي تحددها اللائحة، وعليه إبلاغ الدائنين بالطلب قبل تقديمه. ولكل ذي مصلحة حق الاعتراض على هذا الطلب أمام المحكمة خلال (أربعة عشر) يوماً من تقديمه.
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 86 explained in plain English
This article governs ending the financial restructuring procedure when the plan has been fully implemented:
- Request to end: When the plan has been fully implemented, the trustee must file a request with the court for a judgment ending the procedure, attaching the information and documents the Implementing Regulations specify.
- Notifying creditors: The trustee must notify the creditors of the request before filing it.
- Right to object: Any interested party has the right to object to the request before the court within 14 days of its filing.
Note that, under the text of the article, the objection period runs from the date the request is filed with the court, not from the date the creditors are notified. A creditor who is notified of the request would therefore do well to follow up on the date it is filed so as not to miss the deadline.
The objection is open to any interested party, and the text is not limited to creditors. The article does not state the grounds for objection or what follows from it, and the Implementing Regulations are the reference for the information and documents attached to the request.
This article is linked to Article 87, which counts among the cases of ending the procedure the trustee's request to end it because the plan has been fully implemented and its duties are finished. Anyone with comments on the implementation of the plan can consult a lawyer specializing in bankruptcy and commercial cases before the objection period expires.
Practical example
A restaurant company in Khobar has finished implementing its financial restructuring plan. The trustee notified the creditors of the request to end the procedure, then filed it with the court with the required information and documents. A supplier who believes that part of its dues under the plan was not paid may object before the court within 14 days of the request being filed.
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 86 of the Saudi Bankruptcy Law
When does the financial restructuring procedure end after the plan is implemented?
When implementation is complete, the trustee files a request with the court for a judgment ending the procedure, after notifying the creditors of the request.
How long is the objection period on a request to end the financial restructuring?
14 days from the date the request is filed with the court, and any interested party has the right to object.
Are creditors notified of the request to end the procedure?
Yes. The trustee must notify the creditors of the request before filing it.
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.