Restructuring, Insolvency, and Bankruptcy
usinesses facing financial distress require expert, pragmatic, and timely legal counsel. The landscape of restructuring, insolvency, and bankruptcy involves complex legal and commercial challenges that can significantly impact a company's future, its stakeholders, and its directors. Restructuring offers a pathway to reorganise a company's financial or operational structure to overcome difficulties and return to viability. Insolvency arises when a company is unable to meet its financial obligations, potentially leading to formal bankruptcy proceedings, which are designed to resolve the claims of creditors in an orderly manner, either through liquidation or a court-supervised reorganisation.
Successfully navigating financial crises demands more than just an understanding of the law; it requires strategic foresight, commercial acumen, and robust negotiation skills. Engaging experienced legal counsel early is crucial to:
Understand and Explore All Options:
We help businesses assess their financial health and explore the full spectrum of available options, from informal workouts and refinancing to formal procedures under the Saudi Bankruptcy Law, such as Protective Settlement, Financial Restructuring, or Liquidation.
Protect Stakeholder Interests
Our guidance aims to protect the interests of the company, its directors, shareholders, and creditors throughout the process, ensuring actions are compliant and liabilities are managed.
Maximise Value and Recovery:
Whether pursuing a rescue of the business or an orderly winding-up, our focus is on strategies that preserve and maximise the value of assets for all stakeholders.
Ensure Compliance with Complex Regulations:
The Saudi Bankruptcy Law provides a comprehensive framework for dealing with financial distress. We ensure our clients understand and adhere to these intricate regulations, including timelines, reporting obligations, and procedural requirements.
Negotiate Effectively:
We represent our clients in crucial negotiations with creditors, lenders, investors, and other parties to achieve the most favourable and commercially sound outcomes.
The Saudi Bankruptcy Law, introduced as part of the Kingdom's Vision 2030 reforms, aims to help businesses overcome financial difficulties, preserve viable economic entities where possible, and ensure fair treatment of creditors, thereby contributing to economic stability and attracting investment.
SHP Law's legal team possesses extensive experience in assisting clients facing financial crises. We specialize in guiding companies through the complexities of restructuring, insolvency, and bankruptcy proceedings. Our pragmatic approach combines commercial insight with in-depth legal analysis to identify a company's strengths and weaknesses, enabling us to determine the most effective strategies for navigating the crisis.
Our team provides expert legal counsel on all related matters, including:
Financial Restructuring and Reorganisation:
: Advising on and implementing plans to restructure debt and operations, aiming to restore financial stability and business viability, often utilising procedures available under the Saudi Bankruptcy Law
Insolvency and Bankruptcy Proceedings:
Guiding debtors and creditors through all stages of formal insolvency and bankruptcy procedures, including Protective Settlement, Financial Restructuring, and Liquidation
Investigations and Asset Recovery
Conducting necessary investigations into a company's affairs and pursuing asset recovery actions.
Litigation and Dispute Resolution
: Our experienced litigators assist companies in evaluating risks and opportunities, representing them in court proceedings, enforcement actions, and disputes arising from financial distress.
Directors' Duties and Advisory
Advising directors of distressed companies on their duties, potential liabilities, and best courses of action
• Support for Contracting Companies:
Offering specialised legal support to partners in contracting companies facing financial crises, helping them navigate operational challenges, manage contractual obligations, and fulfil liquidation requirements in accordance with bankruptcy laws and regulations
Creditor Representation:
Advising and representing creditors in protecting their rights and maximising recoveries in insolvency or bankruptcy scenarios.
At SHP Law, we are committed to providing clear, decisive, and supportive legal advice to help businesses and their stakeholders effectively manage and resolve situations of financial distress