Article 90 of the Saudi Bankruptcy Law
المادة 90 من نظام الإفلاس · الفصل الرابع: إجراء إعادة التنظيم المالي: إنهاء الإجراء
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 مفلساً.
ب- استيفاء شروط افتتاح إجراء التصفية أو إجراء التصفية الإدارية المراد افتتاحه.
ج- أن يكون إنهاء إجراء إعادة التنظيم المالي مبنياً على الفقرة (ج) أو الفقرة (د) أو الفقرة (هـ) أو الفقرة (و) أو الفقرة (ز) من المادة (السابعة والثمانين) من النظام.
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 90 explained in plain English
This article deals with what may follow the end of a financial restructuring procedure. It allows the court, on its own motion or at the request of an interested party, to rule to open a liquidation or administrative liquidation procedure if the following conditions are met:
- The debtor is distressed or bankrupt.
- The conditions for opening the liquidation or administrative liquidation procedure sought are met.
- The ending of the financial restructuring was based on paragraph (c), (d), (e), (f) or (g) of Article 87.
It follows that the article does not cover cases of ending based on paragraphs (a) and (b) of Article 87, and that the mere ending of the financial restructuring is not enough on its own: the stated conditions must be met, including that the conditions for the procedure sought to be opened are satisfied. This article does not set out those conditions, which are established elsewhere in the law.
It also follows that in this case the court does not need a request to open liquidation or administrative liquidation, since it may rule to do so on its own motion.
This article is connected to Article 89, which requires the trustee to file the judgment ending the financial restructuring in the bankruptcy register, whereupon its duties end. Anyone who is a debtor or creditor in a procedure that ended in this way would do well to consult a lawyer specializing in bankruptcy and commercial cases.
Practical example
The financial restructuring procedure of a contracting company in Riyadh ended by a judgment based on one of paragraphs (c) to (g) of Article 87, and the company is still distressed. One of its creditors may ask the court to open a liquidation procedure, and the court may rule to do so on its own motion, once the conditions for opening a liquidation procedure are met.
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 90 of the Saudi Bankruptcy Law
Does financial restructuring turn into liquidation if it ends without success?
The court may rule to open liquidation or administrative liquidation if the debtor is distressed or bankrupt, the conditions for the procedure are met, and the ending was based on paragraphs (c) to (g) of Article 87.
Does the court need a request to open liquidation after financial restructuring ends?
No. It may rule to do so on its own motion or at the request of an interested party.
Articles this article refers to
More articles on Liquidation of the Debtor's Assets
- Article 7
Article 7 bars the liquidation of any person under another law unless its assets cover all its debts and it is not defaulting, and makes management members jointly liable if this is violated.
1- مع مراعاة ما ورد في المادة (الرابعة) من النظام، لا يصفى أي شخص بموجب نظام آخر إلا إذا كانت أصوله تكفي لسداد جميع ديونه وكان غير متعثر. 2- إذا تم حل المدين وت
- Article 69
The debtor continues to manage its business during financial reorganization under the trustee's supervision, and at the trustee's request the court may remove its control in cases of negligence, mismanagement or criminal acts.
1- دون إخلال بصلاحيات ومهمات الأمين، يستمر المدين في إدارة أعماله ونشاطه خلال فترة إجراء إعادة التنظيم المالي تحت إشراف الأمين. 2- إذا ارتكب المدين أو أحد المسؤ
- Article 92
The article allows the debtor, a creditor or the competent authority to ask the court to open the liquidation procedure if the debtor is distressed or bankrupt.
دون الإخلال بأحكام الأنظمة ذات العلاقة، للمدين أو الدائن أو الجهة المختصة التقدم إلى المحكمة بطلب افتتاح إجراء التصفية للمدين إذا كان المدين متعثراً أو مفلساً.
- Article 93
The article requires that a liquidation request be accompanied by the information and documents the Implementing Regulations specify to be registered, and sets special conditions where one or more creditors file it.
1- يشترط لقيد طلب افتتاح إجراء التصفية لدى المحكمة أن يقدم الطلب مرافقاً له المعلومات والوثائق ذات العلاقة، وفقاً لما تحدده اللائحة. 2- لا يقيد طلب دائن أو أكثر
- Article 94
A creditor's request to open liquidation is not registered if the debtor disputed the debt before the request, and filing it despite proof of the dispute is an abuse of the procedure.
لا يقيد طلب الدائن بافتتاح إجراء التصفية إذا كان المدين قد نازع الدائن في الدين قبل تقدم الدائن بالطلب. ويعد طلب الدائن افتتاح الإجراء مع وجود ما يثبت منازعة ال
- Article 95
The article governs notifying the debtor or the creditors of a liquidation request, the right to object, and the option to request an alternative procedure that preserves the debtor's business.
1- إذا تقدم غير المدين بطلب افتتاح إجراء التصفية للمدين، فعلى المحكمة تبليغ المدين به خلال مدة لا تزيد على (خمسة) أيام من تاريخ قيد الطلب. وللمدين أن يعترض أمام
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.