ALBAWABA – The Royal Jordanian Airlines (RJ) financial audit report, including subsidiaries, showed that the group’s total losses as of June 30, 2023, exceeded its registered capital, indicating RJ may go bankrupt, Jordanian news agencies reported.
Total losses by the end of the first half of 2023 amounted to JOD 416.8 million ($588.6 million). Whereas total liabilities exceeded the company’s current assets by JOD 201.6 million ($284.7 million), Saraya News reported.
Moreover, the semi-annual report highlighted that the Council of Ministers had decided on June 4 to retain 90 percent of the Jordanian Airports Company’s capital.
The decision is contingent upon the investment value being paid through the issuance of new RJ shares for the Governmental Investment Management Company. This should take place after assessment of the Jordan Airports Company is complete.
The audit company's report said that these events and circumstances give rise to fundamental doubts about the company's ability to continue as an ongoing operational establishment.
The report pointed out that the Companies Law stipulates that if the accumulated losses of a public shareholding company exceed 75 percent of its capital, the company must be liquidated.
As a result, RJ may go bankrupt, unless the company's general assembly decides in an extraordinary meeting to increase the company's capital or deal with the company's losses.
