Insolvency Law to take effect after 180 days

Amman, The Insolvency Law has been issued in the latest edition of the Official Gazette on Thursday and is effective 180 days after its publication.

Under the law, “insolvency” is defined as the state when an institution or individual can no longer meet its financial obligations towards lenders.

The Insolvency Law, according to its validating reasons, aims at enabling individuals and companies to reorganise their businesses when in a troubled financial situation under certain deals reached with creditors.

The law also regulates the insolvency proceedings for foreign organisations operating in the Kingdom according to international conventions ratified by Jordan.

Source: Jordan News Agency