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Distressed businesses, creditors and investors
Bankruptcy and Financial Reorganisation
We help a business choose the procedure that fits its financial position, and represent creditors in protecting their claims.
Saudi Bankruptcy Law offers several procedures, including protective settlement, financial reorganisation and liquidation, each with different conditions and effects on the business, its management and its creditors. We review the financial position and existing obligations, explain the most suitable procedure and its timing, and prepare and follow the applications and proposals before the competent court. We also represent creditors in filing and pursuing claims and objecting to decisions that affect their rights.
Scope of service
What we do
Assessing the Position and Choosing a Procedure
Analysing obligations, cash flows and contracts, and explaining how the available bankruptcy procedures differ and what each one means.
Protective Settlement
Preparing the application and the settlement proposal and negotiating with creditors while the debtor continues to run the business.
Financial Reorganisation
Preparing the reorganisation plan and following it with the bankruptcy trustee and creditors through to voting and court approval.
Liquidation
Following liquidation proceedings, identifying assets and liabilities, and explaining the rights and ranking of partners and creditors.
Creditor Representation
Filing creditor claims within the statutory deadlines, following them, and objecting to decisions to admit or reject claims.
Out-of-Court Debt Restructuring
Negotiating rescheduling or settlement agreements when a consensual solution suits the business better than court proceedings.
How we work
Our approach
- 01
Understand the Financial Position
We review the accounts, obligations, contracts and outstanding claims, and assess how urgent the situation is.
- 02
Choose the Procedure
We explain the available procedures, their conditions and their effect on management and creditors, and recommend a course.
- 03
Prepare the File
We prepare the application, proposal or claim and supporting documents, and review them with you before filing.
- 04
Follow Through to Closure
We follow the procedure before the court and with the trustee and creditors, and keep you informed at every stage.
FAQ
Before you get in touch
Does bankruptcy necessarily mean liquidating the company?
No. Saudi Bankruptcy Law includes procedures aimed at keeping the business running, such as protective settlement and financial reorganisation, alongside liquidation. We explain which procedure suits the business.
When should a business consider bankruptcy procedures?
The earlier the assessment, the wider the options. If the business expects difficulty paying its debts or claims are building up, it is better to review the position before a creditor files.
I am a creditor of a company in bankruptcy. What should I do?
Claims must be filed within set deadlines and procedures, and delay can affect your right. Send us the debt documents and we will explain the steps and deadlines.
Do the owners keep control of the company during the procedure?
It depends on the procedure. In a protective settlement the debtor usually continues to manage the business, while powers differ in other procedures. We explain this before you choose.
Discuss Your Financial Position in Confidence
Send a short description of the position and existing obligations, and we will identify the available procedures and the right timing.