Business Continuity & Stakeholder Protection
We provide legal services in restructuring and insolvency in accordance with the applicable laws of the Kingdom. Our services include representing creditors and debtors, and supporting financial reorganization and settlement procedures, helping address financial distress while protecting stakeholders' rights.
The Saudi Bankruptcy Law (2018) provides three main procedures: preventive settlement, financial restructuring, and liquidation. It enables distressed debtors to reorganize and protects creditor rights through court-supervised processes.
A company should consider restructuring when it faces liquidity issues but remains viable. Filing early under the preventive settlement procedure preserves value, protects management, and prevents creditor enforcement actions.
Secured creditors are paid first from collateral proceeds. Unsecured creditors rank after employees' wages, government dues, and bankruptcy administration costs, then share pro-rata in remaining assets.
Yes. We represent banks, suppliers, and other creditors in preventive settlement votes, restructuring negotiations, claim filings, creditor committee work, and challenges to fraudulent transfers and preference payments.