PROTECTING THE DEBTOR BY MEANS OF SETTLEMENT IN THE PREVENTIVE SETTLEMENT AND FINANCIAL RESTRUCTURING PROCEDURES UNDER THE SAUDI BANKRUPTCY LAW (AN ANALYTICAL STUDY)

Salih Mohammad M alhumami,  Ghaleb Mubarak S Alhamami,  Mohammed Ali M. Alasmari,  Ahmed Ahmed S Al-Tuwaili,

doi:10.18848/7tt87466

Authors

Salih Mohammad M alhumami, Ghaleb Mubarak S Alhamami, Mohammed Ali M. Alasmari, Ahmed Ahmed S Al-Tuwaili, Author

DOI:

https://doi.org/10.18848/7tt87466

Abstract

There is no doubt that protecting the insolvent debtor is a matter of great importance in the
economic sphere, as it helps prevent enterprises from collapsing. Accordingly, legislation has
been enacted to allow the preparation of rescue plans as soon as early signs of economic
difficulty appear in commercial undertakings. The Saudi Bankruptcy Law lays down
procedures applicable to both creditor and debtor and introduces practical mechanisms that
clearly safeguard the debtor’s rights, attaching multiple legal effects that signal the legislator’s
seriousness in giving effect to such protection. Among these mechanisms is enabling settlement
(ṣulḥ) within the preventive settlement and financial restructuring procedures, this study
highlights that mechanism.