Royal Jordanian posts USD271m loss for 3Q2020, reviewing share capital increase

Royal Jordanian announced (27-Oct-2020) accumulated losses of JOD192.5 million (USD271.5 million) as of 30-Sep-2020, which represents 70% of its capital. According to company law, if accumulated losses exceed 75% of capital, then the company shall be liquidated, unless the company's general assembly issues a decision to increase the company's capital or deal with the losses. Jordan's Prime Ministry resolved to authorise procedures that will increase Royal Jordanian's capital by JOD50 million (USD70.5 million) during a five year period, effective 01-Jan-2021, which will result in the provision of JOD10 million (USD14.1 million) p/a. The company remains in discussions with the Prime Ministry and Ministry of Finance to have these payments occur during a two year period, effective 2020, in order that it may receive JOD25 million (USD35.3 million) p/a. Currently, the company's liabilities also exceed its assets by an amount of JOD118.9 million (USD167.7 million). [more - original PR]