The agent of a company requested the court to start administrative liquidation proceedings for the company. This request was based on the fact that the company had suffered significant losses due to the recession in the contracting business and the cessation of payments from its major clients, which resulted in the accumulation of debts. The losses had continued until the date of this request, and the company acknowledged it had sufficient assets to cover the cost of the liquidation.

The court said that the case documents revealed that the creditors had not been informed of the request. The court said that according to the provisions of Article 95 of Saudi Arabia Cabinet Decision No. 264/1439 and Article 49 of the Executive Regulations Saudi Arabia Cabinet Decision No. 622/1439, the creditors should have been notified of the request and the date of the hearing within seven days of its registration.

The court dismissed the request.