SACC 181/1443
This case involved a request by an attorney for a company under liquidation for liquidation proceedings to start for another company that owed them money it could not pay.
Background
The attorney for a company under liquidation, filed a request stating that another company owed debts and could not fulfill them, requesting the commencement of liquidation proceedings.
According to Article 99 of Saudi Arabia Cabinet Decision No. 264/1439, and since the representative of the company had submitted documents proving the existence of judicial claims on behalf of their company against third parties under contracts and invoices, and had provided financial documents for 2019 showing the company's cash flows and assets, demonstrating its ability to continue its activities and repay debts within a reasonable period, the court ruled: to reject the request for the commencement of liquidation proceedings for the company submitted by the company under liquidation.
Decision
The court ruled to reject the request for the commencement of liquidation proceedings for a company submitted by the company under liquidation.