Situations we help with
- Your company cannot pay debts as they fall due and creditors are threatening action.
- You want to negotiate with creditors while the business keeps trading.
- Shareholders have decided to close the company and need a voluntary liquidation.
- A customer or debtor has entered a bankruptcy procedure and you need to file your claim.
- Company losses have reached half of the capital and the board must act.
What the work covers
- Assessing the options under the Bankruptcy Law and its Implementing Regulations
- Protective settlement and financial restructuring applications and proposals
- Creditor claims, meetings and voting
- Liquidation — court-supervised or voluntary under the Companies Law
- Director and manager exposure when a company is insolvent
- Employee entitlements and contract issues during a procedure
The procedures in brief
| Procedure | What it is for | Who can apply |
|---|---|---|
| Protective settlement | Agree a settlement with creditors while the debtor keeps managing the business | Debtor |
| Financial restructuring | Restructure debts and the business under the supervision of a licensed trustee | Debtor, creditors or a competent authority |
| Liquidation | Sell the debtor's assets and distribute the proceeds to creditors under the court's supervision | Debtor, creditors or a competent authority |
| Small-debtor procedures | Simplified, cheaper versions of the three procedures above | As above, for debtors meeting the small-debtor criteria |
| Administrative liquidation | A streamlined liquidation where assets are unlikely to cover the costs of an ordinary liquidation | As set out in the law |
The procedures are available to individuals carrying on profit-seeking activity in the Kingdom, to companies and other entities registered in the Kingdom, and to non-Saudi investors for their assets located in the Kingdom.
Why timing matters
The earlier a company acts, the more options it has. Protective settlement and financial restructuring are designed to preserve a viable business, but they depend on the company still having something to restructure. Directors who let a company continue trading while it is plainly unable to pay its debts may also face questions about their own conduct under the Companies Law.
For joint stock companies, the Companies Law requires the board to act within 60 days of learning that losses have reached half of the issued capital, including calling the shareholders to decide the company's future.
How a consultation works
- 1
Tell us what you need
Send a short enquiry or call the office. Describe the matter in general terms — no confidential documents yet.
- 2
Conflict check and call-back
The firm checks that it can act for you, then contacts you to understand the matter.
- 3
Consultation
You meet a lawyer in Jeddah or online. You get an initial view of your position and options.
- 4
Scope and fees in writing
If you instruct the firm, you receive the scope of work and fees in writing before work begins.
Questions clients ask
What procedures does the Saudi Bankruptcy Law provide?
Who regulates bankruptcy in Saudi Arabia?
Can creditors start a bankruptcy procedure against a company?
Is closing a solvent company the same as bankruptcy?
Official sources
Laws change. We cite the official text so you can check the current version.
This page is general information, not legal advice for your situation.