Abstract

The idea of financial refunding of the projects during the preventive settlement procedures based on the new philosophy which is adopted by the Saudi organizer to maintain the investment projects in the Kingdom and encourage them. Rebalancing between creditors on one hand and debtors on the other. which seemed to ensure the continuation of these projects and their economic and social function. and increase their productive power and continuity. in order to ensure the fulfillment of the wishes of individuals in the community. This idea and other ideas were adopted by the Saudi organizer came within the framework of achieving the Kingdom's Vision 0242. which includes developing and modernizing the systems and improving the investment environment in the Kingdom of Saudi Arabia. Undoubtedly. adopting this idea. and giving the troubled enterprises an opportunity to rise from their economic stumble and restore their financial position. especially those small projects that may face many financial and economic difficulties due to their poor capital. had a significant positive impact on the economic facility of the state on one hand. and the owners of this enterprises and creditors on the other hand. by giving them the opportunity to restore their financial positions. This study is intended to clarify the legal provisions which are set by the organizer in the new bankruptcy Law. and reached some of recommendations; the most significant of them are the following: We recommend the Saudi organizer to show his keenness on the projects possibility to get financing during bankruptcy procedures in general. and conducting the preventive settlement in particular. by providing advantages to banks and financial institutions in supporting and developing small and medium projects. especially troubled ones in order to overcome all the difficulties which facing these economic projects, we recommend the Saudi organizer to amend Article No. 981. which does not require the court's approval of unsecured financing during the preventive settlement of bankruptcy. to be; it is required the Court's approval of secured and unsecured financing in order to ensure the verification and making sure of the debtor's ability to continue its activity with this financing and to maintain the value of the assets of the bankruptcy or increase the outcome of their sale.