1- Terms and phrases used in the Rules shall have the meanings assigned thereto under Article (1) of the Bankruptcy Law promulgated by Royal Decree No. (M/50) dated 28/5/1439 H, and Article (1) of the Implementing Regulations of the Bankruptcy Law issued by the Council of Ministers’ resolution No. (622) dated 24/12/1439 H.

2- The following terms and phrases, used herein, shall have the meanings assigned thereto, unless the context requires otherwise:

• Rules: Rules of Cross-Border Bankruptcy Proceedings.

• Foreign Proceeding: a collective judicial or administrative proceeding in a foreign state, including an interim proceeding, pursuant to a law relating to bankruptcy in which proceeding the assets and affairs of the debtor are subject to control or supervision by a foreign court, for the purpose of reorganization or liquidation.

• Foreign main proceeding: a foreign proceeding taking place in the state where the debtor has the center of its main interests.

• Foreign non-main proceeding: a foreign proceeding taking place in a state – other than the state where the debtor has the center of its main interests- where the debtor carries out a non-transitory economic activity with human means and goods or services.

• Foreign Court: a judicial or other authority in a foreign state competent to commence or supervise a foreign proceeding.

• Foreign representative: means a person or body, including one appointed on an interim basis, authorized in a foreign proceeding to administer the reorganization or the liquidation of the debtor’s assets or affairs or to act as a representative of the foreign proceeding.

The Rules shall apply where:

• a. A foreign court or a foreign representative seeks assistance from the Court in connection with a foreign proceeding;

• b. The Court, bankruptcy commission or officeholder seeks assistance from a foreign court  or a foreign representative in connection with a proceeding under the Law;

• c. A foreign proceeding and a proceeding under the Law in respect of the same debtor are taking place concurrently; or

• d. Creditors or other interested persons in a foreign state have an interest in requesting the commencement of, or participating in, a proceeding under the Law.

1. The Rules shall not prejudice the international agreements to which the Kingdom is a party.

2. The court may refuse to take any action if the action would be manifestly contrary to the public policy of the Kingdom.

3. The Rules shall not limit the power of a court or an officeholder to provide additional assistance to a foreign representative under other laws of the Kingdom.

4. In applying the Rules, regard is to be had to its international origin and to the need to promote uniformity in its application and the observance of good faith.

The court shall be competent to consider requests relating to recognition of foreign proceedings and relief.

1. Without prejudice to the laws of the foreign state, the officeholder appointed in a bankruptcy proceeding under the Law is entitled to exercise his relevant powers and tasks in the foreign state in accordance with the Law, and he may communicate directly with the foreign court and the foreign representative and cooperate therewith under the supervision of the Court.

2. The foreign representative is entitled to apply directly to the Court for relief and recognition of the foreign proceeding in which he has been appointed, and he may apply to commence a  proceeding under the Law.