Best Restructuring & Insolvency Lawyers in Makkah

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Trabulsi & Co.
Makkah, Saudi Arabia

Founded in 2015
12 people in their team
Arabic
English
Trabulsi & Co. is a KSA (Riyadh-Jeddah) based Law Firm providing high-quality services that rise to international standards while maintaining our national values. Specializing in litigation, corporate advisory, and legal project management we provide services directed to both local and...
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Founded in 2005
English
Located in Mecca, Saudi Arabia, on Amena Bint Wahb Street, Al Hamra Umm Al Jud, the Law Office of Hashim Zaini Koshak offers comprehensive legal services to a diverse clientele. The firm is recognized for its proficiency in various legal domains, providing tailored solutions that address the unique...
Nami Al-Sharif Law Firm
Makkah, Saudi Arabia

Founded in 2000
50 people in their team
Arabic
English
who are weAn entity that embodies a model of professionalism, honesty and creativity, as the group believes that the lawyer is a partner of the judge in reaching justice by the fact that they both search for the truth and because they have one great goal, which is to establish justice and support...
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About Restructuring & Insolvency Law in Makkah, Saudi Arabia

Restructuring and insolvency law in Makkah, Saudi Arabia, provides the framework for financially distressed individuals, partnerships, and companies to resolve their debts and obligations. The legal system aims to balance the interests of debtors and creditors, while offering fair opportunities for rehabilitation or orderly liquidation. In recent years, significant reforms have been introduced to align Saudi insolvency practices with international standards, including the issuance of the Saudi Bankruptcy Law. This law covers preventive settlement, financial restructuring, liquidation, and protective settlement procedures, serving as a structured mechanism for both local and foreign entities operating in Makkah.

Why You May Need a Lawyer

Legal advice is often crucial when facing restructuring or insolvency issues in Makkah. Complex laws, cultural considerations, and procedural requirements make it important to work with a qualified lawyer. You may need a lawyer if:

  • You or your business is struggling to repay debts and risk defaulting.
  • Court proceedings for bankruptcy or liquidation have been initiated against you or your company.
  • You are a creditor seeking to recover debts from an insolvent party.
  • You wish to propose a restructuring plan to avoid bankruptcy.
  • You are involved in negotiations with creditors or stakeholders.
  • You suspect insolvency proceedings are being misused or that assets are being improperly transferred.
  • There are cross-border elements or foreign creditors involved in your case.

A knowledgeable lawyer can advise on your rights, ensure the correct procedures are followed, and help protect your interests during complicated negotiations or litigation.

Local Laws Overview

Restructuring and insolvency in Makkah is governed mainly by the Saudi Bankruptcy Law enacted in 2018. This law introduced comprehensive legal tools for dealing with financial distress:

  • Preventive Settlement Procedure - Designed to allow debtors and creditors to agree on debt settlements while the business continues to operate.
  • Financial Restructuring Procedure - Allows a company to reorganize its financial obligations with court and creditor involvement, aimed at rescuing potentially viable businesses.
  • Liquidation - Provides a framework for the orderly winding up of an insolvent business, selling its assets to pay creditors.
  • Protective Settlement Procedure - Enables debtors to reach agreements with creditors under court protection to avoid insolvency.

The law also addresses issues such as claims priority, avoidance of fraudulent transactions, creditor rights, and international cooperation. The Bankruptcy Commission oversees case management and licensing of bankruptcy practitioners. Each procedure has specific eligibility and documentation requirements.

Cases are adjudicated by specialized commercial courts in Makkah. The process is transparent but can involve multiple stakeholders and court hearings.

Frequently Asked Questions

What is the difference between restructuring and insolvency?

Restructuring seeks to reorganize a business's debts and operations to keep it running, while insolvency refers to the state where a person or company cannot pay their debts as they come due, potentially leading to liquidation or court proceedings.

Who can file for bankruptcy in Makkah?

Businesses, traders, professionals, and even individuals may apply for bankruptcy or restructuring under the Saudi Bankruptcy Law, provided they meet the eligibility requirements.

What are the main procedures under the Saudi Bankruptcy Law?

The primary procedures are preventive settlement, financial restructuring, liquidation, and protective settlement. Each serves a different purpose based on the debtor's situation.

Can creditors initiate insolvency proceedings?

Yes, creditors are entitled to apply to the court to commence insolvency or liquidation proceedings if a debtor defaults or fails to meet their financial obligations.

Is court involvement always required?

Most formal insolvency and restructuring procedures require court oversight, but some preventive negotiations can occur out of court if all parties agree.

What debts are prioritized in insolvency cases?

The Saudi Bankruptcy Law sets out a priority order for claims, usually giving precedence to secured debts, employee wages, and certain government dues before unsecured creditors.

What happens to employees in bankruptcy?

Employees' claims for wages are generally given high priority, and the law includes provisions to protect their rights during restructuring or liquidation.

Can foreign creditors participate in Saudi insolvency cases?

Yes, the law allows for the participation of foreign creditors and recognizes some international aspects of insolvency, making Makkah's insolvency regime more accessible to cross-border claimants.

How long does a restructuring or insolvency process usually take?

The timeline varies based on the complexity of the case, the type of procedure, and court scheduling, but cases can range from a few months for straightforward settlements to over a year for complicated restructurings.

Do I need a lawyer for bankruptcy in Makkah?

While not always mandatory, a lawyer is strongly recommended to ensure compliance with local laws, to prepare documents, and to represent your interests in court or negotiations.

Additional Resources

If you require more information or support regarding restructuring and insolvency in Makkah, the following resources can be valuable:

  • Saudi Bankruptcy Commission - The main government body regulating bankruptcy procedures and practitioners.
  • Makkah Commercial Court - Specialized court handling restructuring and insolvency cases in Makkah.
  • Licensed Bankruptcy Experts - Certified professionals who can act as trustees, administrators, or advisers in insolvency processes.
  • Chamber of Commerce in Makkah - Provides information and referrals for business owners facing financial distress.
  • Local law firms - Many firms offer initial consultations to discuss your situation and legal options.

Next Steps

If restructuring or insolvency concerns affect you or your business in Makkah, it is important to act quickly. Here are suggested next steps:

  • Gather all relevant financial documents and records regarding your assets, liabilities, and obligations.
  • Assess your situation and consider your objectives - whether to rescue the business, settle debts, or organize an orderly wind-up.
  • Consult with a specialist restructuring and insolvency lawyer in Makkah who understands the local legal landscape.
  • Discuss possible solutions, such as preventive settlement or restructuring, with your adviser before court action.
  • Contact the Saudi Bankruptcy Commission or the Chamber of Commerce for further guidance or referrals to trustworthy professionals.
  • Ensure you comply with all legal and procedural requirements, including notifications and deadlines stipulated by law.

Acting on professional legal advice early improves the chances of finding a workable solution and minimizing losses for all parties involved.

Lawzana helps you find the best lawyers and law firms in Makkah through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Restructuring & Insolvency, experience, and client feedback. Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters. Get a quote from top-rated law firms in Makkah, Saudi Arabia - quickly, securely, and without unnecessary hassle.

Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.