Services/Corporate Governance/Corporate Restructuring

Corporate Restructuring

Financial reorganization planning, protective settlements, debt reduction negotiations, creditor committees, and viable business continuation strategies.

Corporate restructuring under Saudi Bankruptcy Law provides businesses facing financial difficulties with a legal framework to reorganize their affairs while continuing operations. This is often the best option for viable businesses experiencing temporary financial distress, as it allows them to restructure debts, renegotiate contracts, and emerge stronger.

Two Primary Restructuring Procedures

Protective Settlement (التسوية الوقائية) - designed for businesses with temporary financial difficulties but fundamentally sound operations. This procedure provides immediate protection from creditor actions while the company negotiates reduced payment terms. Benefits include immediate stay on enforcement actions, protection from travel bans for company officers, ability to continue business operations, and opportunity to negotiate debt reductions of 30-70%.

Financial Reorganization (إعادة التنظيم المالي) - more comprehensive restructuring for businesses requiring deeper operational and financial changes. This procedure allows for substantial debt restructuring, operational changes and asset sales, contract renegotiations, new financing arrangements, and comprehensive business transformation under court supervision.

Key Benefits

  • Immediate protection from creditor enforcement actions
  • Continued business operations during restructuring
  • Substantial debt reduction opportunities (30-70%)
  • Flexible payment schedules negotiated with creditors
  • Protection of company officers from travel bans
  • Court-supervised fairness for all stakeholders
  • Preservation of business value and jobs

Our Process

1.
Financial Assessment

Analyze financial condition and restructuring viability

2.
Procedure Selection

Choose protective settlement or financial reorganization

3.
Petition Preparation

Draft comprehensive bankruptcy petition with financial schedules

4.
Court Filing

File with Bankruptcy Court, triggering automatic stay

5.
Plan Development

Create detailed reorganization plan with payment schedules

6.
Creditor Negotiation

Negotiate plan terms with creditor committee

7.
Court Approval

Obtain court confirmation of reorganization plan

8.
Successful Exit

Complete plan performance and emerge from bankruptcy

Get a Free Legal Consultation

Speak with our legal experts today. We're here to help you with all your legal needs with over 32 years of experience.

Call Us

+966 800 442 7171

Email Us

contact@hoquqi.com

Working Hours

Sun - Thu: 9 AM - 6 PM