RJ reports accumulated losses of JD400 million, exceeding capital

Royal Jordanian Airlines  RJ
(File photo: Wikimedia Commons)
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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