Multiple Options Under the Saudi Bankruptcy Law
The Bankruptcy Law provides three main paths: a financial reorganization procedure allowing the company to restructure its debts while continuing its activity, a liquidation procedure formally ending the company's activity, and a preventive settlement procedure for companies still able to continue with limited external help.
An Honest Assessment of Actual Financial Distress Severity
We start with an honest, realistic assessment of your actual financial distress severity, since this assessment determines the most suitable path: is the company rescuable through restructuring, or is organized liquidation the more realistic option protecting all parties' interests?
Financial Reorganization Procedure and Protecting the Company From Creditors
We help eligible companies file a financial reorganization request, a procedure granting the company temporary protection from individual creditor claims, while a comprehensive restructuring plan is prepared and presented to creditors for approval.
Negotiating With Creditors on the Restructuring Plan
We represent you in negotiating restructuring terms with creditors, including debt scheduling, interest reduction, or converting part of the debt to equity stakes, balancing rescuing the company with creditors' legitimate rights.
Protecting Management From Personal Liability During Distress
We help distressed company managers understand their legal obligations during this sensitive stage, and how to avoid personal liability that could arise from continuing to contract despite knowing of the actual financial distress.
Creditor Payment Priority Order
The Bankruptcy Law defines a specific priority order for creditor payment, such as labor dues enjoying high priority, and we help companies and creditors understand their position in this order and their actual rights.
Operational Restructuring Alongside Financial Restructuring
We help companies integrate operational restructuring, such as reassessing unprofitable activity or cutting costs, alongside financial restructuring, ensuring the company can actually sustainably continue after exiting this procedure.
Creditor Rights in Bankruptcy Procedures
We represent creditors wishing to protect their rights during their debtor's bankruptcy procedures, including participating in voting on the restructuring plan and claiming a fair share of any liquidation.
New Financing During Restructuring Procedures
We help distressed companies secure new financing necessary to continue operations during the restructuring period, including negotiating with new financiers on terms granting them suitable repayment priority to accept this additional risk.
How We Start With You
Send us your actual financial situation details, whether you're a distressed company owner or a creditor seeking to protect your rights, on WhatsApp. We assess your position with complete candor and help you choose the most suitable path.
Frequently Asked Questions
Our company faces financial difficulty. How do we know if it's rescuable through restructuring or if liquidation should be considered?
We conduct an honest assessment of your actual distress severity, including analyzing expected future cash flows, to determine the most realistic path.
Does filing a financial reorganization request immediately protect us from individual creditor lawsuits?
Yes, this procedure grants temporary protection allowing you to prepare a comprehensive restructuring plan without the pressure of simultaneous individual lawsuits.
Some creditors are rejecting the proposed restructuring plan. What are our options?
We help you negotiate adjusting the plan to address their legitimate concerns, while understanding the collective approval mechanisms statutorily required to pass the plan.
We're managers of a distressed company. Do we bear personal liability for continuing to contract despite knowing of the distress?
Personal liability could arise in certain cases, and we help you understand these risks and make correct decisions to protect yourselves.
We're creditors of a company that entered bankruptcy procedures. How do we protect our rights?
We represent you in participating in voting on the restructuring plan and claiming your fair share according to the statutory priority order.
Does restructuring only mean rescheduling debts, or does it include operational changes too?
It often includes both together; we help you integrate operational restructuring with financial restructuring to ensure the company's sustainability after exiting this procedure.
We need new financing to continue our operations during restructuring. Can it be obtained?
Yes, we help you negotiate with new financiers on terms granting them suitable repayment priority to accept this additional financing.