"Trade": the bankruptcy system offers better solutions to companies in difficulty

Majid Al-Rasheed, secretary of the Bankruptcy Committee of the Ministry of Commerce and Investment, said: "The new bankruptcy system after its official application will contribute to the treatment of bankruptcies or bankruptcies. " "There is no doubt that there are companies that are not at their best because of their problems, you have to take advantage of the new bankruptcy system," he said, "We hope that the system will offer better solutions to these companies. "
Al-Rasheed told Asharq Al-Awsat that the system would boost the confidence of local and foreign investors in the economy and would establish a balanced framework for dealing with bankruptcy cases in the Kingdom according to international standards. He pointed out that the system would enhance the Kingdom's ranking in international indicators, particularly insolvency reports, until the Kingdom ranks 168th out of 190 countries, and expects the United Kingdom to be ranked as one of the world's leading countries. application of the system officially changes the order of the Kingdom. The following month of Dhu al-Hijjah will be the date of entry into force of the bankruptcy system issued four months ago and thoroughly revised by many concerned agencies, confirming the completion of the executive regulations of the system and the examination of these. ] Rashid pointed out that the iss bankruptcy website that includes all the cases, including all the details that are provided by the ongoing modernization, with the aim of introducing all the questions about the internal and external levels, in the pursuit of the principle of transparency in these matters. "The bankruptcy system aims to allow the debtor to regulate its terms and to take into account the rights of creditors.The system aims to balance the two and to choose the most appropriate for the companies.It limits the exit of the company. economic activity due to financial difficulties and offers tools and treatments With the greatest possible value in a short time, which gives confidence to the credit market. "
The new system is independent and includes 230 articles on 17 chapters, is in line with new international economic practices and is in accordance with Islamic law.The success of the system requires concerted efforts
For its part, Maher Al- Saeed, legal counsel and project director of Bankruptcy System at the Ministry of Commerce and Investment, said: "The system includes seven chapters for bankruptcy proceedings, namely the Financial Reorganization Small Debtors Regulation, liquidation administration of small debtors and administrative liquidation. "
The purpose of the preventative settlement procedure was to allow debtors to hear from creditors to settle their debts and to continue the management of their business, pointing out that this action is a proactive case of protection against default Debt repayment, liquidation process which in case of non-continuation of the activity is the best solution and ensures the implementation as soon as possible He stressed that the system enjoys the participation of more and more. a government, including the ministries of the Ministry of Justice, Trade and Investment, Saudi Arabia and Saudi Arabia.The system aims to support the Saudi national options affirmed by the vision of the 2030 Kingdom, including achieving a prosperous economy and facilitating business, "he said.
and pointed out that the friendly reconciliation committees of the chambers of commerce had not found any solutions to the cases studied, as the cases of small cases were handled by the peace committees, and therefore the experience did not lead to the action Here it is considered an out-of-court, so it was necessary for the existence of a judicial legal framework to solve the problems faced by the companies commercial, as well as preserving the rights of the debtor and the creditors, and perhaps the new bankruptcy system will achieve these goals.
The speakers discussed the objectives of the new bankruptcy system, its aspects and its implications, as well as the definition of the bankruptcy or the stumbling of the companies and the institutions and procedures contained in the system.
The interventions of the meeting revealed a coordination with the General Authority for Small and Medium Enterprises to establish certain standards for small debtors and work with the Commission to study these criteria so that the debtor can benefit from the procedures provided for in the system.