Jordan's highest court has accepted an insolvency filing by Lafarge Jordan Cement, according to news sources in the country.
The Jordan Times said news agency Petra has reported that Lafarge Jordan lodged the filing at the Court of Cassation under the Insolvency Law in order to avoid liquidation due to the difficult financial conditions exacerbated by the COVID pandemic. The LafargeHolcim-owned company had been unable to fulfill its obligations towards its employees, retirees and creditors.
The accumulated losses of the company are reported to amount to about JD120m (US$169.25m), while its capital is JD60m (US$84.63m).
Petra reported the company as saying that it intends to adopt “a well-thought-out and actionable financial plan” to pay off its debts and meet its liabilities within reasonable legal periods and in agreement with creditors.
The company has two cement plants in the country, one in Rashadiyah and another in Fuheis that has not been in operation for the last eight years, plus an export terminal in Aqaba that was established in 1992.
It said that weak demand and inability to compete due to high variable operating and administrative costs were the main reasons for its financial problems.
According to the company’s website Lafarge Jordan Cement produces 4 million tons annually.
