We represent both debtors and creditors across the full spectrum of insolvency proceedings, including preventive settlement, financial restructuring, and liquidation under Saudi Arabia’s Bankruptcy Law (Royal Decree M/50 of 1439H). Our team provides both strategic advice and hands-on legal execution in high-value distressed situations, combining deep Saudi law expertise with an understanding of the commercial realities that drive restructuring outcomes.

Enacted in 2018, the Saudi Bankruptcy Law introduced a transformative framework aligned with international best practices. The Protective Settlement procedure — analogous to Chapter 11 in the United States — allows viable businesses to remain under debtor control while negotiating a restructuring plan with creditors under court supervision, protected by an automatic stay on enforcement actions. Financial Restructuring is a more formal court-supervised reorganization where a trustee may be appointed to manage the process. Liquidation provides an orderly winding-up mechanism with defined creditor priority rules. The Bankruptcy Court, established as a specialist court within the Saudi judiciary, has developed a growing body of case law since the Law came into effect.

For debtors, we advise on the early identification of financial distress, options assessment, and the preparation of Protective Settlement applications — including creditor engagement strategies, proposed plan terms, and court submissions. For creditors — including banks, bondholders, trade creditors, and government entities — we advise on proof of debt, participation in creditors’ committees, plan negotiation, and enforcement of security interests. We also advise on the creation and enforcement of pledges, real estate mortgages, and assignments of receivables under the Pledge Law (Royal Decree M/19 of 1435H), ensuring that secured positions are properly documented and enforceable in distressed scenarios.

Where insolvency involves assets or parties across multiple jurisdictions, we coordinate with international counsel to manage cross-border proceedings, seek recognition of foreign insolvency orders, and advise on the priority and enforcement of claims against assets located in Saudi Arabia and abroad.