Insolvency Law a ‘significant step forward’, says JCC Representative

AMMAN — The Insolvency Law is a key stabiliser of Jordan’s investment environment, making it more attractive to business owners and foreign investors, representative of the financial and banking sector in the Jordan Chamber of Commerce (JCC), Firas Sultan, said on Saturday.

The Insolvency Law is a “significant step forward” for Jordan, Sultan said, noting that the law aligns with global best practices and streamlines economic entry and exit processes, the Jordan News Agency, Petra, reported.

The law is expected to improve Jordan's ranking in the ease of doing business report, and encourage individuals facing financial distress to address their insolvency status, he added.

Sultan also noted that the law is intended to help rescue struggling companies, or those at the risk of insolvency, and ensuring business survival rather than liquidation. 

There exists a need to raise public awareness on the law's provisions, particularly those related to prohibiting the seizure of the debtor’s assets and the continuation of pre-existing contracts, such as employment contracts, administrative contracts, licences and franchise rights, and the ability to retain managing control of the entity while halting interest and late payment penalties, Sultan said.

He said that the law aims to regulate procedures for trader insolvency, and enable them to overcome their financial distress, reorganise their operations and continue their business through a plan agreed upon by creditors. The law also establishes mechanisms, conditions and requirements for selecting insolvency agents and defining their duties and obligations.