KSA Bankruptcy Law has been saved
KSA Bankruptcy Law
The Saudi Arabian Bankruptcy Law
The Saudi Arabian Bankruptcy Law was introduced in 2018 to provide guidance with respect to the adoption and implementation of insolvency proceedings. The key aim of the Bankruptcy Law, in spite of the name connotation, is to rescue insolvent businesses through reorganisation and financial restructuring.
In light of the more recent economic shocks around COVID-19 and the decline in oil prices, which has added further constraints on the government budgets of oil dependent countries, this law is expected to have an even more critical role in the restructuring and turnaround of Saudi Arabian corporates.
Based on Deloitte’s experience in dealing with bankruptcy cases under the Saudi Arabian Bankruptcy Law, we outline in this document the major bankruptcy proceedings and key considerations around adopting and implementing these procedures. The law offers these corporates a legal platform to facilitate the implementation of restructuring procedures, while ensuring that creditors’ rights are preserved and creditors are treated fairly.
Download the report to learn more about the implementation mechanisms of bankruptcy proceedings governed by the law, the key roles and responsibilities of the major stakeholders within a bankruptcy procedure, and some key practical considerations and answers to frequently asked questions.
If you have any questions, please reach out to Karim Labban.