A debtor filed a request to the court seeking the liquidation of his company due to the cessation of commercial activity, his inability to continue operations, and the accumulation of debts which exceeded the capital.

The court said that Article No. 170 of Saudi Arabia Cabinet Decision No. 264/1439 stipulated that in order to consider a debtor's request for the liquidation of their company, they must demonstrate insolvency or financial distress, indicating that the continuation of their business was unlikely and that their assets were insufficient to cover the liquidation expenses. The court also said that Article 6 of Saudi Arabia Cabinet Decision No. 622/1439 stipulated that the announcement of the initiation of liquidation proceedings should be made on the insolvency committee's electronic platform.

The court said that the case documents revealed that the debtor had not completed the necessary procedures for the announcement as required by this mentioned article. The court said that their failure to do so indicated their lack of seriousness and misuse of the proceedings.