Bankruptcy, Insolvency & Restructuring Lawyers in Jeddah

Bankruptcy, insolvency & restructuring in Jeddah: a chance to survive, not a commercial death sentence

The Saudi Bankruptcy Law issued in 1439H doesn't treat a distressed debtor as a party to be liquidated immediately; it offers graduated statutory options for addressing their situation where possible. The law provides seven different procedures ranging from preventive solutions to final liquidation, and choosing the wrong procedure for your situation can significantly prolong the process or weaken your position against creditors.

Preventive composition: before things get worse

This procedure allows a debtor whose finances have begun to falter, but who hasn't yet reached full distress, to reach an agreement with creditors through a settlement plan they propose themselves, while retaining management of their business throughout the process. This track suits someone who believes their business can continue with a grace period or rescheduling, not someone who has already reached full inability to pay.

Financial restructuring: a deeper plan to save the business

When distress runs deeper than temporary disruption, the financial restructuring procedure allows for a more comprehensive plan involving rescheduling or reducing debts with creditor approval, with a representative creditors' committee overseeing the process. The law sets specific timeframes for each stage of preparing and voting on the plan.

Suspect period transactions: when they get invalidated

The law allows invalidating transactions the debtor made before opening bankruptcy proceedings if they occurred during the "suspect period" (the period preceding the opening during which the debtor's transactions are subject to scrutiny), including gifts without consideration, selling assets below market value, preferential payments to one creditor at others' expense, or new guarantees for existing debts without justification. This means any financial transaction during this critical period needs careful legal review before execution.

Our bankruptcy, insolvency, and restructuring services

• Assessing your financial position and determining the right procedure: preventive composition, restructuring, or liquidation
• Preparing and filing bankruptcy applications via Najiz on behalf of the debtor or creditor
• Negotiating realistic settlement plans with creditors that preserve business continuity
• Representing creditors in claiming their rights per the statutory priority order

How we start

1. Send us a summary of your financial position (business type, debt value, current stage) over WhatsApp
2. We review the documents and determine the most suitable statutory option for your specific situation
3. We file the application and follow through to a resolution that preserves your rights

To address financial distress or creditor claims in Jeddah, contact us on WhatsApp.

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