Licensed Bankruptcy Trustee
Acting as trustee in proceedings under the Saudi Bankruptcy Law — from protective settlement and financial restructuring through to liquidation. Licensed by the Bankruptcy Commission, licence no. 148045.
What the service covers
The Saudi Bankruptcy Law provides seven procedures. A trustee is appointed according to the procedure opened and the circumstances of the case:
- Protective Settlement — the debtor reaches an arrangement with creditors while retaining management of the business.
- Financial Restructuring — obligations are restructured under court supervision so the business can continue trading.
- Liquidation — assets are sold and proceeds distributed to creditors.
- Protective Settlement for Small Debtors
- Financial Restructuring for Small Debtors
- Liquidation for Small Debtors
- Administrative Liquidation — where the debtor’s assets are insufficient to cover the cost of the other procedures.
The trustee is appointed by the court or by the applicant, as the case requires, and carries out the duties assigned under the procedure opened.
When you need a trustee
- A distressed business seeking an arrangement with its creditors before the position deteriorates further.
- A viable business whose current obligations are choking operations and need restructuring.
- A business that can no longer continue, where assets must be realised and distributed to creditors in proper order.
- A creditor protecting its position and pursuing its claim within an open procedure.
- A smaller enterprise needing the shorter, lower-cost small-debtor route.
How we work
- Initial assessment of the financial and legal position, and selection of the appropriate procedure before committing to any route.
- Preparing the file and the documents required to open the procedure before the court.
- Acting as trustee once appointed: identifying assets and liabilities, and verifying creditor claims.
- Administering the procedure, reporting to the court, and preparing periodic reports.
- Closing the procedure and delivering whatever follows from it.
The firm holds both a chartered accountancy licence from SOCPA and a bankruptcy trustee licence — so reading the financial statements and assessing solvency is part of the engagement itself, not an outside opinion commissioned later.
Frequently asked questions
What is the difference between financial restructuring and liquidation?
Financial restructuring aims to keep the business alive and trading after its obligations are reorganised. Liquidation sells the assets, distributes the proceeds to creditors, and ends the business.
Can anyone act as a trustee?
No. Carrying out the trustee functions set out in the Bankruptcy Law and its implementing regulations requires a valid licence from the Bankruptcy Commission.
What are the small-debtor routes?
Simplified procedures, shorter and less costly, available to enterprises whose activity falls below the thresholds set in the implementing regulations.
Do you assess the position before a procedure is chosen?
Yes. Choosing the wrong procedure costs both time and money, so an assessment of the financial position and of whether the business is viable precedes any engagement.
Can the firm act as accountant and as trustee in the same matter?
That is settled before an engagement is accepted, according to what the law and regulations require and the demands of professional independence.
In-depth guides to the Saudi Bankruptcy Law
- What a bankruptcy officeholder does and when you need one
- Protective settlement: stay of claims, voting and ratification
- Financial restructuring: three differences that decide it
- Small debtor procedures: when the simplified track fits
- Company liquidation versus liquidation and administrative liquidation under the Bankruptcy Law
- The creditor’s guide: claims within 90 days, voting and the ranking of debts
- Your company cannot pay its debts? Your options before creditors act
Is your business in distress — or do you need a trustee in an open procedure?