A creditor filed a request to the court to initiate liquidation proceedings against the debtor because the latter was unable to settle his financial obligations to the creditor and was unable to continue his commercial activities due to accumulated debts.

The debtor argued that his commercial activities were ongoing and that he was capable of repaying the debts but requested financial restructuring.

The Court said that that Article 92 of Saudi Arabia Cabinet Decision No. 264/1439 stipulated that the debtor, creditor, or competent authority may apply to the court to initiate liquidation proceedings against the debtor if the debtor was commercially insolvent or bankrupt.

The court said that the case documents revealed that the debtor's debts exceeded the value of his assets, and that his business had been suspended for a period of time. The court said that the case documents also revealed that the debtor was trying to persuade potential buyers to finance his business relaunch which confirmed that he was bankrupt according to Article 1 of Saudi Arabia Cabinet Decision No. 264/1439.

The court ruled to initiate liquidation proceedings against the debtor and appointed a liquidator.