
Best Restructuring & Insolvency Lawyers in Riyadh
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List of the best lawyers in Riyadh, Saudi Arabia

About Restructuring & Insolvency Law in Riyadh, Saudi Arabia
Restructuring and insolvency law in Riyadh, Saudi Arabia, is designed to help companies and individuals who are struggling with financial distress. Saudi Arabia has implemented a modern legal framework to support business continuity, protect creditors' and debtors' rights, and provide mechanisms for out-of-court and formal insolvency proceedings. The Saudi Bankruptcy Law, enacted in 2018, aims to encourage entrepreneurship and investment, while giving viable businesses a chance to recover. Riyadh, as the nation's economic and administrative capital, sees significant restructuring and insolvency activity, especially as the business environment evolves rapidly.
Why You May Need a Lawyer
Legal assistance in restructuring and insolvency is essential in various situations, including:
- If your business is experiencing financial difficulties and you want to explore options for restructuring debts
- When creditors initiate legal action to recover debts
- If you are considering filing for bankruptcy as an individual or company
- When you want to negotiate settlements with creditors or suppliers
- If you need to protect your assets from seizure during insolvency proceedings
- When you require guidance on compliance with Saudi bankruptcy laws
- If you are a creditor harmed by a debtor's insolvency and you want to maximize recoveries
- To represent you before bankruptcy courts and ensure your interests are protected
- To understand the rights and obligations of shareholders, directors, or partners during insolvency
- To assist in restructuring contracts, employment relationships, and ongoing business operations
Having a qualified legal advisor in these scenarios helps you navigate complex laws, avoid costly mistakes, and achieve the best possible outcome.
Local Laws Overview
The central legislation governing restructuring and insolvency in Riyadh is the Saudi Bankruptcy Law, enacted in 2018 and complemented by a range of implementing regulations. This law introduced several new procedures tailored to deal with a variety of financial challenges:
- Preventive Settlement Procedure - Allows debtors to negotiate with creditors out of court, under supervision, to avoid full insolvency proceedings
- Financial Restructuring Procedure - Enables a debtor in financial distress to propose and implement a restructuring plan with creditor approval
- Liquidation Procedure - Oversees the fair distribution of a debtor's assets among creditors and winding up of the business
- Administrative Liquidation Procedure - For small debtors, offering a simplified and expedited process
The Bankruptcy Law aims to balance the interests of creditors, debtors, and other stakeholders, and includes provisions for the court appointment of trustees and experts, as well as court supervision of all formal proceedings. The law applies to all companies, individuals, and non-Saudis operating in the Kingdom, with some exceptions for regulated entities like banks and insurance companies.
Public registers of bankruptcy cases have also been established, and the law covers strict penalties for malicious or fraudulent bankruptcy. Riyadh hosts bankruptcy courts with jurisdiction over these matters, providing specialized insight and administration.
Frequently Asked Questions
What is the main law governing restructuring and insolvency in Saudi Arabia?
The Saudi Bankruptcy Law is the main legislation that governs restructuring and insolvency, supported by related judicial regulations and procedures.
Who can initiate insolvency or restructuring procedures in Riyadh?
Both debtors and creditors can initiate insolvency or restructuring proceedings, depending on the financial situation and the outcome desired.
Does the Bankruptcy Law apply to individuals as well as companies?
Yes, the law covers both individuals and companies, including partnerships and certain non-Saudi entities operating in the country.
What is the difference between restructuring and liquidation?
Restructuring seeks to save and reorganize the business to enable it to fulfill obligations, while liquidation involves winding down operations and distributing assets to creditors.
Can a debtor continue business during restructuring?
In most cases, debtors are permitted to continue business operations under court supervision while restructuring plans are negotiated and implemented.
What protections are available to debtors after filing for bankruptcy?
Filing offers several protections, including a moratorium on enforcement actions and certain legal proceedings, giving debtors breathing space to negotiate with creditors.
How are creditors' rights protected under Saudi bankruptcy law?
The law ensures that creditors can participate in proceedings, vote on restructuring plans, and receive distributions in accordance with statutory priorities.
What are the penalties for fraudulent bankruptcy?
Serious penalties apply for actions intended to defraud creditors, including fines and potential imprisonment for directors or individuals involved.
Can foreign creditors participate in insolvency proceedings in Riyadh?
Yes, foreign creditors have rights to file claims and participate in Saudi insolvency proceedings, subject to compliance with local procedures.
What role does the court play in restructuring and insolvency matters?
Specialized bankruptcy courts in Riyadh oversee these matters, approve plans or settlements, appoint trustees, and ensure all proceedings follow the law.
Additional Resources
For anyone seeking further information or assistance with restructuring and insolvency in Riyadh, the following resources may be helpful:
- Saudi Bankruptcy Commission - The main government body responsible for regulating bankruptcy procedures and maintaining public registers
- Ministry of Commerce - Provides regulatory guidance, public notices, and access to relevant laws and forms
- Board of Grievances (Administrative Courts) - Where bankruptcy courts are situated in Riyadh, handling hearings and judicial matters
- Licensed Legal Consultants and Law Firms - Many offer specialized services in insolvency, restructuring, and corporate law
- Commercial Chambers of Commerce in Riyadh - Offer guidance to business owners on dealing with financial distress
Next Steps
If you believe you or your business needs legal assistance with restructuring or insolvency in Riyadh:
- Gather all documents relevant to your financial situation, such as contracts, financial statements, and creditor information
- Consider your objectives, whether it's saving the business, negotiating debt, or managing liquidation
- Seek out a qualified legal professional or law firm in Riyadh familiar with bankruptcy and restructuring law
- Schedule an initial consultation to discuss your situation and possible legal strategies
- Stay proactive, as acting early maximizes the chances for successful outcomes and protection of your interests
Navigating insolvency and restructuring can be complex, but with the right legal guidance, you can take informed steps toward resolving financial distress and moving forward.
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.