Royal Jordanian reports loss of $271.5mln in Q3 2020

RJ could face liquidation

  
An Airbus A319-132 aircraft of Royal Jordanian Airlines is seen at Zurich airport, Switzerland October 21, 2016.

An Airbus A319-132 aircraft of Royal Jordanian Airlines is seen at Zurich airport, Switzerland October 21, 2016.

REUTERS/Arnd Wiegmann

AMMAN — Royal Jordanian (RJ) airlines has accumulated losses amounting to JD192.5 million, an equivalent to 70 per cent of its capital in the third quarter of 2020, the Jordan News Agency, Petra, reported, citing a statement from the national carrier.

The company’s debts surpassed its assets by JD118.9 million, “jeopardising the entity’s continuity”, according to the statement. RJ added that it could face liquidation, according to Article 266 of the Jordanian Company’s Law which stipulates that a company’s existence is brought to an end if its losses amounted to 75 per cent of its capital.

Royal Jordanian negotiated rescheduling payments with the Prime Ministry and the Ministry of Finance and was “comforted by the government’s willingness to support its future endeavours”.

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