“Okaz” learned that, this Ramadan, the Bankruptcy Committee initiated 9 requests for preventive bankruptcy settlement for companies and institutions in financial and administrative liquidation lawsuits before the commercial courts in Riyadh, Jeddah, Dammam and Medina.
And the sources reported that the activity of the companies for which judgments were issued to open the liquidation procedures varied between contracting, trade, industry, spare parts, and other companies to operate hotels, maintenance, and provide meals, in addition to a marine and medical company, and the Bankruptcy Commission initiated procedures to enable the debtor who is bankrupt, defaulted, or who is expected to suffer. From the disturbance of his financial conditions, he was able to take advantage of the procedures to regulate his situation in order to resume his activity, taking into account the rights of creditors, and several decisions were issued to open the procedure for administrative liquidation, financial reorganization, debt scheduling and other provisions by appointing trustees to conduct liquidation for troubled companies.
And identical sources reported that the bankruptcy trustees had drawn up flexible “operating plans” that could be changed, based on market fluctuations. While the implementation procedures suggested any settlements, including the restructuring of the debtor's business, activities, capital, or debts, whether in a state or not, or reducing them, postponing their fulfillment, installments, or converting them into capital in the debtor or otherwise, in addition to Comprehensive restructuring of some of the senior managements and the use of specialized consulting offices with expertise and high efficiency and the development of policies and procedures that include the powers and responsibilities of the senior managements in a way that is flexible and effective and is in line with technological progress to ensure that the mistakes made by the faltering administrations are not repeated, and the bankruptcy trustees confirmed full commitment to the plans set to restart Troubled facilities and follow-up on a regular basis to correct any possible deviations later.
According to “Okaz” sources, a bankruptcy secretary announced the issuance of a ruling by the Commercial Court in Riyadh opening the liquidation procedure for a one-person company. On a proposal to conduct a financial reorganization of a contracting company according to a treatment plan included in the financial reorganization plan, and it was decided to classify creditors into 5 categories, namely government agencies, banks, companies, individuals, and workers, and the provisions of the proposal begin from the date of its approval by the court for a period not exceeding 3 years in accordance with For a proposed payment schedule in accordance with the procedures for implementing the plan, and the financial entitlements resulting from the debtor’s exercise of the activity, which will arise after the ratification of the proposal, are established through existing, previous or new contracts, and an agreement will be made with creditors on a payment schedule that preserves their rights for them either through settlement, reconciliation, or obtaining According to a final court ruling to be paid if they are among the creditors included in the proposal, according to the payment plan for each creditor according to the category to which it belongs, without prejudice to the debtor’s obligations towards its creditors.
And in Riyadh, the bankruptcy trustee announced the ratification of a proposal to conduct a financial reorganization of a company, making sure that there is no decrease in the rights of creditors and that the debt is paid in full 100%, and there is no postponement of any of the debts and that the entire debt is paid at a rate of 100%, according to the plan. laid on 8 years, and the debtor did not propose to increase the capital or obtain financing, and suggested selling the company's former building headquarters.
A contracting company and an electromechanical company submitted a request to the Commercial Court to open the administrative liquidation procedure, and the court set the date for the hearing at the end of Ramadan.
Businesswoman on the list
In Makkah, a businesswoman announced her submission to the Commercial Court with a request to open the liquidation procedure for a commercial company, and 12 creditors, including companies and businessmen, announced the bankruptcy trustee of a hotel operating company in Jeddah, the liquidation procedures, and the owner of a maintenance and cleaning company in Jeddah announced the administrative liquidation procedure, The Bankruptcy Committee announced to a number of creditors the ruling issued by the Commercial Court in Riyadh to open the administrative liquidation procedure for a company specialized in providing meals, and the Bankruptcy Committee called on creditors to submit their claims electronically.
The Secretary of the Bankruptcy Committee revealed a ruling issued by the Commercial Court in the Eastern Province to open a financial reorganization procedure for a medical company, and called on creditors to submit their claims electronically.
Who is broke?
Commercial business lawyer, Saad Misfer Al-Maliki, explained that the bankruptcy system comes within the legislative plans established to preserve rights and improve the investment environment in general. He said that the bankruptcy system aims to regulate procedures, namely preventive settlement, financial reorganization, liquidation, preventive settlement for small debtors, financial reorganization for small debtors, liquidation for small debtors, and administrative liquidation. The bankruptcy system defined the bankrupt as a debtor whose debts consumed all of his assets, while the defaulter was defined by the system as a debtor who stopped paying a claimed debt on its due date.
The system provided for the formation of a committee called the Bankruptcy Committee, which enjoys legal personality and financial and administrative independence, and operates under the supervision of the Minister of Commerce. It is responsible for creating, maintaining and managing the bankruptcy register, licensing bankruptcy trustees and experts as determined by the regulations, preparing a list of bankruptcy trustees and a list of experts, and issuing rules governing, inspecting and verifying any of the bankruptcy procedures.
4 procedures for liquidation or settlement
Al-Maliki added that the system carried 4 main procedures aimed at achieving the general objectives of the system. The first is the preventive settlement procedure, which is a procedure aimed at facilitating the debtor’s reaching an agreement with its creditors to settle its debts, in which the debtor retains the management of its activity. The second procedure is the financial reorganization procedure, which aims to facilitate the debtor's reaching an agreement with its creditors on the financial reorganization of its activity under the supervision of the Financial Reorganization Trustee. As for the third procedure, it is the liquidation procedure, which aims to limit the creditors' claims, sell the bankruptcy assets, and distribute its proceeds to the creditors under the management of the liquidation trustee. The fourth procedure aims to sell the assets of the bankruptcy, whose sale is not expected to result in sufficient proceeds to meet the expenses of the liquidation procedure or the liquidation procedure for small debtors, under the management of the Bankruptcy Committee. or businesses that aim to achieve profit, commercial and professional companies, organized entities and other companies and entities aiming to achieve profit, registered in the Kingdom, and a non-Saudi investor of a natural or legal capacity who owns assets in the Kingdom, or carries on commercial, professional or business aimed at To make a profit, through a facility licensed in the Kingdom, and only the assets of that investor present in the Kingdom are subject to the procedures of the system.
Adnan Shabrawi (Jeddah) @Adnanshabrawi