SACC 3/1443
This case involved a refusal of a liquidation request. The company had acted in bad faith and failed to provide the required documentation.
Background
A company submitted a request to the court seeking liquidation, citing its financial difficulties due to the recession and an accumulation of debts, which had led to their inability to repay them.
Decision
The court said that Article 99 of Saudi Arabia Cabinet Decision No. 264/1439 stipulated that the court should reject a liquidation request if the applicant had acted in bad faith or if it became apparent that the request included an abuse of the procedure. The court said that the case documents revealed that the company had liquidated its branches over a year and six months before the date of this application. In addition, the company's financial statements were not in order, and it did not submit the required information and documents according to Article 6 of the Information and Documentation Regulations, which required a statement of any transactions conducted by the debtor during the previous 24 months before submitting the request.
The court dismissed the request.