AMMAN —
Royal Jordanian (RJ)
Airlines' auditor has disclosed that the company's accumulated losses reached
JD400 million as of December 31, 2022, exceeding its capital.
اضافة اعلان
The announcement was made on the
Amman Stock Exchange website, raising concerns about the company's financial
viability.
Liabilities exceed current assets
According to Al-Mamlaka TV, the
airline's current liabilities have exceeded its current assets by JD144.9
million, further indicating doubts about the airline's ability to continue
operating.
The auditor noted that Article 266
of the
Companies Law of 1997 and its amendments require that if the accumulated
losses of a public shareholding company exceed 75 percent of its capital, the
company must be liquidated.
An exception is made if the General
Assembly decides in an extraordinary meeting to increase the company's capital
or address the losses situation.
Cabinet approves increase in capital
The company's auditor also stated
that the Cabinet authorized the
Ministry of Finance to increase the company's
capital by JD70 million in two tranches. JD35 million was received in May 2022,
with the remainder received in August 2022.
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