Bankruptcy & Liquidation

Bankruptcy And Liquidation

Many foreign companies operate their business by having JV, subsidiary or branch in Saudi Arabia. The directors and shareholders seek to avoid personal liability for the company’s debts and to protect their personal assets and reputation if the business fails in Saudi Arabia.

The company owns the assets of the business and will be liable for any debts incurred. But a shareholder, will not be held liable personally for the company’s debts and other financial liabilities.

The Company’s reputation will be affected if proper settlements are not made to creditors, wages of laborers and vendors. There are certain conditions in which the Directors or Shareholders will be compelled to issue a personal guarantee.

Moreover, few foreign companies have left without liquidating and canceling the registration and license through legal procedures.

This has led to severe issues in later stages allowing the creditors including government agencies to take legal proceedings inside Saudi Arabia or in domicile jurisdiction.

We help such debt facing companies to resolve their critical debt problems by way of liquidation as per the law and settle the creditors through appropriate legal procedures and safeguard the company’s reputation and secure the shareholders or any individuals from any personal liabilities.

We will make sure that the company is out of all liability to local authorities in terms of any penalties or compliance notices that might be pending on the company.

bankruptcy law of saudi arabia and Bankruptcy in Saudi Arabia

‎‏We can clearly say that the economic crises in many countries led to the closing of lots of facilities. Because of this, the Saudi government has formed bankruptcy system which aims entirely to organize the responsibilities and debts of debtors to resume their activities.

‎‏Bankruptcy Procedures in Saudi Arabia:

debt collection saudi arabia - In many debt claim cases they do not succeed in Courts due to lack of substantial documents available for the Judge to prove the debt existed. Documents without signatures, stamps or authentication are not accepted by the court and make the collection process even weaker. As a law firm we are well aware of these circumstances, and as such during paralegal (out of court collection) process, if the debtor refuses to cooperate, we engage our lawyers to negotiate and allow the debtor to sign any commitment by way of a settlement agreement or letter. Such documents become authenticated and legally enforceable in court, making the changeless debt a recoverable debt.
We will work with the proper legal module and request the client to issue a power of attorney in our favor to represent them legally to the debtor which will trigger the debtor so that legal action can be imposed on him. Our strategy helps clients in reducing expenses and protracted legal battles.
For credit insurance companies, we provide legal opinion with reasonable fees on the merits of a claim in recovering the insured amount paid by the insurance company from the Debtors. That what make us the best debt collectors

debt collection saudi arabia - In many debt claim cases they do not succeed in Courts due to lack of substantial documents available for the Judge to prove the debt existed. Documents without signatures, stamps or authentication are not accepted by the court and make the collection process even weaker. As a law firm we are well aware of these circumstances, and as such during paralegal (out of court collection) process, if the debtor refuses to cooperate, we engage our lawyers to negotiate and allow the debtor to sign any commitment by way of a settlement agreement or letter. Such documents become authenticated and legally enforceable in court, making the changeless debt a recoverable debt.
We will work with the proper legal module and request the client to issue a power of attorney in our favor to represent them legally to the debtor which will trigger the debtor so that legal action can be imposed on him. Our strategy helps clients in reducing expenses and protracted legal battles.
For credit insurance companies, we provide legal opinion with reasonable fees on the merits of a claim in recovering the insured amount paid by the insurance company from the Debtors. That what make us the best debt collectors