A procedure aimed at enabling the debtor (the merchant) to reach an agreement with their creditors for financial reorganization under the supervision of a reorganization trustee, granting the debtor an opportunity to recover from the economic crisis.
- Definition: A procedure designed to facilitate the debtor (the merchant) reaching an agreement with their creditors for financial reorganization under the supervision of a financial reorganization trustee.
- Rationale: This procedure allows the debtor to recover from the economic crisis under the trustee's supervision, ensuring the fairness of the process and protecting the merchant's creditors.
- Governing Provisions: Articles of Chapter Four of the Saudi Bankruptcy Law.
Legal Reference: Saudi Bankruptcy Law — Chapter Four
Source: Official firm post on X — View Original Post