Latest news with #BankruptcyLaw
Gulf Insider
29-04-2025
- Business
- Gulf Insider
Saudi Arabia: Bankruptcy Committee Handles 16 Court Decisions To Resolve Defaults Of Medical, Aviation, And Car Rental Companies
The Bankruptcy Committee has received 16 judicial decisions issued by five commercial courts with regard to liquidation, financial restructuring, and administrative liquidation lawsuits during the last one month period. Okaz/Saudi Gazette has learned from sources that the commercial courts in Riyadh, Dammam, Madinah, Jeddah, and Abha have issued decisions regarding the rescheduling of bad debts, addressing any financial or administrative difficulties, and protecting creditors' assets. The Bankruptcy Committee is examining decisions issued for medical, operation, and maintenance companies, construction and development companies, contracting and aviation companies, minerals materials companies, a medical complex, and engineering companies, as well as contracting, industrial, and industrial mineral materials companies, and a car rental company. According to the sources, the Bankruptcy Committee announced the names of a number of creditors who could not be notified due to the lack of contact information and a lack of response. These creditors include three government entities. In sessions held virtually, the Bankruptcy Committee announced to creditors that commercial courts in Riyadh, Dammam, Madinah, Jeddah, and Abha had issued rulings initiating administrative liquidation procedures, and financial restructuring procedures, as appropriate, for each company. The Bankruptcy Committee called on creditors to submit their claims within a period not exceeding 60 days. Creditors should submit their claims against the debtor using the claims service on the committee's website, ensuring that the creditor's claim form is completed, signed, and attached to the claim documents. The Bankruptcy Committee has initiated procedures to enable bankrupt or distressed debtors, or those expected to suffer financial distress, to benefit from procedures to regulate their financial situation and resume their activities, while respecting the rights of creditors. Several court rulings have been issued initiating administrative liquidation procedures, financial restructuring, debt rescheduling, and other rulings appointing trustees to conduct the liquidation of distressed companies. Lawyer Saad Misfer Al-Maliki said that the Bankruptcy Law is formulated as part of the legislative measures to safeguard rights and improve the investment environment in general. He said that the law aims to regulate procedures, including preventive settlement, financial restructuring, liquidation, preventive settlement for small debtors, financial restructuring for small debtors, liquidation for small debtors, and administrative liquidation. The Bankruptcy Law defines a bankrupt person as a debtor whose debts have consumed all of his assets. A defaulter is defined as a debtor who has failed to pay a debt on its due date. Al-Maliki said that the law stipulates the formation of a committee called the Bankruptcy Committee, which enjoys financial and administrative independence. It is responsible for establishing, maintaining, and managing the bankruptcy registry, licensing bankruptcy trustees and experts in accordance with the regulations, preparing a list of bankruptcy trustees and experts, and issuing regulatory rules, inspections, and verifications related to any bankruptcy procedures. Al-Maliki explained that the law has identified four main procedures aimed at achieving its overall objectives. The first is the preventive settlement procedure, which aims to facilitate the debtor's reaching an agreement with his creditors to settle debts, while the debtor retains control over his business. The second procedure is the financial restructuring procedure, which aims to facilitate the debtor's reaching an agreement with his creditors to restructure his business financially under the supervision of a financial restructuring trustee. The third is the liquidation procedure, which aims to limit creditors' claims, sell the bankruptcy assets, and distribute the proceeds to creditors under the management of a liquidation trustee. The fourth procedure aims to sell bankruptcy assets whose sale is not expected to generate sufficient proceeds to meet the costs of the liquidation procedure.
Zawya
29-04-2025
- Business
- Zawya
Saudi: Bankruptcy Committee handles 16 court decisions to resolve defaults
RIYADH — The Bankruptcy Committee has received 16 judicial decisions issued by five commercial courts with regard to liquidation, financial restructuring, and administrative liquidation lawsuits during the last one month period. Okaz/Saudi Gazette has learned from sources that the commercial courts in Riyadh, Dammam, Madinah, Jeddah, and Abha have issued decisions regarding the rescheduling of bad debts, addressing any financial or administrative difficulties, and protecting creditors' assets. The Bankruptcy Committee is examining decisions issued for medical, operation, and maintenance companies, construction and development companies, contracting and aviation companies, minerals materials companies, a medical complex, and engineering companies, as well as contracting, industrial, and industrial mineral materials companies, and a car rental company. According to the sources, the Bankruptcy Committee announced the names of a number of creditors who could not be notified due to the lack of contact information and a lack of response. These creditors include three government entities. In sessions held virtually, the Bankruptcy Committee announced to creditors that commercial courts in Riyadh, Dammam, Madinah, Jeddah, and Abha had issued rulings initiating administrative liquidation procedures, and financial restructuring procedures, as appropriate, for each company. The Bankruptcy Committee called on creditors to submit their claims within a period not exceeding 60 days. Creditors should submit their claims against the debtor using the claims service on the committee's website, ensuring that the creditor's claim form is completed, signed, and attached to the claim documents. The Bankruptcy Committee has initiated procedures to enable bankrupt or distressed debtors, or those expected to suffer financial distress, to benefit from procedures to regulate their financial situation and resume their activities, while respecting the rights of creditors. Several court rulings have been issued initiating administrative liquidation procedures, financial restructuring, debt rescheduling, and other rulings appointing trustees to conduct the liquidation of distressed companies. Lawyer Saad Misfer Al-Maliki said that the Bankruptcy Law is formulated as part of the legislative measures to safeguard rights and improve the investment environment in general. He said that the law aims to regulate procedures, including preventive settlement, financial restructuring, liquidation, preventive settlement for small debtors, financial restructuring for small debtors, liquidation for small debtors, and administrative liquidation. The Bankruptcy Law defines a bankrupt person as a debtor whose debts have consumed all of his assets. A defaulter is defined as a debtor who has failed to pay a debt on its due date. Al-Maliki said that the law stipulates the formation of a committee called the Bankruptcy Committee, which enjoys financial and administrative independence. It is responsible for establishing, maintaining, and managing the bankruptcy registry, licensing bankruptcy trustees and experts in accordance with the regulations, preparing a list of bankruptcy trustees and experts, and issuing regulatory rules, inspections, and verifications related to any bankruptcy procedures. Al-Maliki explained that the law has identified four main procedures aimed at achieving its overall objectives. The first is the preventive settlement procedure, which aims to facilitate the debtor's reaching an agreement with his creditors to settle debts, while the debtor retains control over his business. The second procedure is the financial restructuring procedure, which aims to facilitate the debtor's reaching an agreement with his creditors to restructure his business financially under the supervision of a financial restructuring trustee. The third is the liquidation procedure, which aims to limit creditors' claims, sell the bankruptcy assets, and distribute the proceeds to creditors under the management of a liquidation trustee. The fourth procedure aims to sell bankruptcy assets whose sale is not expected to generate sufficient proceeds to meet the costs of the liquidation procedure. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Saudi Gazette
28-04-2025
- Business
- Saudi Gazette
Bankruptcy Committee handles 16 court decisions to resolve defaults of medical, aviation, and car rental companies
Okaz/Saudi Gazette RIYADH — The Bankruptcy Committee has received 16 judicial decisions issued by five commercial courts with regard to liquidation, financial restructuring, and administrative liquidation lawsuits during the last one month period. Okaz/Saudi Gazette has learned from sources that the commercial courts in Riyadh, Dammam, Madinah, Jeddah, and Abha have issued decisions regarding the rescheduling of bad debts, addressing any financial or administrative difficulties, and protecting creditors' assets. The Bankruptcy Committee is examining decisions issued for medical, operation, and maintenance companies, construction and development companies, contracting and aviation companies, minerals materials companies, a medical complex, and engineering companies, as well as contracting, industrial, and industrial mineral materials companies, and a car rental company. According to the sources, the Bankruptcy Committee announced the names of a number of creditors who could not be notified due to the lack of contact information and a lack of response. These creditors include three government entities. In sessions held virtually, the Bankruptcy Committee announced to creditors that commercial courts in Riyadh, Dammam, Madinah, Jeddah, and Abha had issued rulings initiating administrative liquidation procedures, and financial restructuring procedures, as appropriate, for each company. The Bankruptcy Committee called on creditors to submit their claims within a period not exceeding 60 days. Creditors should submit their claims against the debtor using the claims service on the committee's website, ensuring that the creditor's claim form is completed, signed, and attached to the claim documents. The Bankruptcy Committee has initiated procedures to enable bankrupt or distressed debtors, or those expected to suffer financial distress, to benefit from procedures to regulate their financial situation and resume their activities, while respecting the rights of creditors. Several court rulings have been issued initiating administrative liquidation procedures, financial restructuring, debt rescheduling, and other rulings appointing trustees to conduct the liquidation of distressed companies. Lawyer Saad Misfer Al-Maliki said that the Bankruptcy Law is formulated as part of the legislative measures to safeguard rights and improve the investment environment in general. He said that the law aims to regulate procedures, including preventive settlement, financial restructuring, liquidation, preventive settlement for small debtors, financial restructuring for small debtors, liquidation for small debtors, and administrative liquidation. The Bankruptcy Law defines a bankrupt person as a debtor whose debts have consumed all of his assets. A defaulter is defined as a debtor who has failed to pay a debt on its due date. Al-Maliki said that the law stipulates the formation of a committee called the Bankruptcy Committee, which enjoys financial and administrative independence. It is responsible for establishing, maintaining, and managing the bankruptcy registry, licensing bankruptcy trustees and experts in accordance with the regulations, preparing a list of bankruptcy trustees and experts, and issuing regulatory rules, inspections, and verifications related to any bankruptcy procedures. Al-Maliki explained that the law has identified four main procedures aimed at achieving its overall objectives. The first is the preventive settlement procedure, which aims to facilitate the debtor's reaching an agreement with his creditors to settle debts, while the debtor retains control over his business. The second procedure is the financial restructuring procedure, which aims to facilitate the debtor's reaching an agreement with his creditors to restructure his business financially under the supervision of a financial restructuring trustee. The third is the liquidation procedure, which aims to limit creditors' claims, sell the bankruptcy assets, and distribute the proceeds to creditors under the management of a liquidation trustee. The fourth procedure aims to sell bankruptcy assets whose sale is not expected to generate sufficient proceeds to meet the costs of the liquidation procedure.
Gulf Insider
07-03-2025
- Business
- Gulf Insider
Kuwait Imposes 43,290 Travel Bans On Debtors In H1 2024
Kuwait has launched a massive crackdown on debtors, with authorities imposing seizures on assets and issuing thousands of travel bans just weeks after the government reinstated the arrest of individuals unable to repay their debts. The General Administration of Sentences Enforcement at the Ministry of Justice reported that 2,140,417 creditors filed requests in the first half of 2024 to seize debtor-owned assets held by third parties, following final court rulings in their favour. In the same period, officials seized 42,885 vehicles linked to unpaid debts and issued 43,290 travel bans to restrict defaulters from leaving the country. However, 25,149 travel bans were lifted after debtors collectively paid KD 6,183,290 to settle their obligations. A total of 4,460,069 legal procedures were carried out in the first half of the year, with 48 per cent related to executive seizure requests — making it the most common enforcement measure. Meanwhile, travel bans due to outstanding debts accounted for 43.2 per cent of all cases in the travel ban departments. Compared to the first half of 2023, debt-related travel bans surged by 31.7 per cent in 2024. The surge in debt-related legal proceedings follows recent amendments to Kuwait's Civil and Commercial Procedures Law and Bankruptcy Law.
Zawya
25-02-2025
- Business
- Zawya
Saudi: Minister of commerce approves actual beneficiary rules
RIYADH — Minister of Commerce Dr. Majed Al-Qasabi has approved the actual beneficiary rules, which will take effect, in conjunction with the Commercial Registration Law, on April 3, 2025. Any company that violates the rules of the actual beneficiary shall be punished with a fine of up to SR500000 or any alternative penalty in accordance with the Companies Law and its executive regulations. The rules aim to enhance corporate transparency in line with international standards and establish a database for recording and maintaining the actual beneficiary information. The rules were prepared in accordance with the recommendations of the Financial Action Task Force (FATF) and international best practices, in cooperation with specialized experts. The actual beneficiary is a natural person, who directly or indirectly owns at least 25 percent of the company's share capital, as well as controls 25 percent of minimum of total voting rights. He is also the one, who has the power to appoint or remove the company's manager, board majority, or chairman. The actual beneficiary should be able to influence the company's decisions or operations, acts as a legal representative of an entity meeting any of the above criteria, as well as serves as a director or board member in the company. In the event that any of the above criteria is not met, the company's director, board member or chairman - as the case may be - shall be deemed the real beneficiary. The rules apply to companies subject to the provisions of the Companies Law and foreign companies that operate within the Kingdom, except for joint-stock companies listed on the capital market. The rules also exempt companies, whose capital is fully owned by the state or one of its legal entities directly or indirectly, and companies subject to any of the liquidation procedures under the Bankruptcy Law, from the requirement to disclose the real beneficiary's data. The rules emphasized that the company's founders must disclose the real beneficiary's data when establishing a company, while existing companies at the time of the rules' enforcement must disclose it within a period ending with the due date of the annual confirmation of the accuracy of the data registered in the commercial register. The rules also spell out the companies' obligations in terms of disclosing the real beneficiary's data to the ministry and any update thereto, as well as preparing a special register in the company to record the data, and submit the annual confirmation of the accuracy of the real beneficiary's data to the ministry, which is done without financial compensation to the company or the real beneficiary. The rules have strengthened the confidentiality of data and the statutory period for which it must be retained. This data is only accessible to the regulatory bodies and competent authorities mentioned in the relevant regulations.
