Seven procedures enabled by the Saudi Bankruptcy Law for distressed companies: from preventive settlement to financial restructuring and liquidation.
- Liquidation: Liquidation of the debtor's assets and distribution of proceeds to creditors when continuation is not feasible.
- Preventive Settlement: A procedure preceding the cessation of payments, aimed at reaching an agreement with creditors to avoid bankruptcy.
- Financial Restructuring: An agreement between the debtor and creditors to reorganize the financial situation under the supervision of an administrator.
- Administrative Liquidation: Liquidation conducted by a liquidation administrator instead of the debtor.
- Preventive Settlement for Non-Traders: Available to non-trader debtors in accordance with the system's regulations.
- Financial Restructuring for Non-Traders: Financial restructuring available to additional categories of debtors.
- Liquidation for Non-Traders: Optional liquidation requested by the debtor themselves without a bankruptcy ruling.
Legal Reference: Saudi Bankruptcy Law
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