Reorganization: An insolvency procedure preventing liquidation in accordance with the provisions of the Jordanian Insolvency Law: A Comparative Study

Abstract

The Jordanian legislature related to "insolvency" has a great importance due to its effect on preserving the sustainability of stalled economic projects, taking into account the existence of guarantees that preserve the rights of all parties, including creditors and debtors, in a way that enhances confidence in the investment environment and raises economic growth rates. The restructuring phase starts when the preliminary phase ends, upon the court’s announcement for the end of this phase and the beginning of the reorganization phase - unless the debtor requests to proceed with the liquidation procedures - and if the insolvency agent’s report concludes that reorganization is not possible, or if the economic activity stops, then the court issues a decision to proceed with the liquidation process. The study concluded that the reorganization phase - of both types – in case the debtor was bound by it and succeeded, would take him out of the financial turmoil that affected his economic project and that led to his insolvency from both actual and imminent types.

Keywords

• Insolvency
• Actual insolvency
• Imminent insolvency
• Economic establishment
• Debtor
• Reorganization stage