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Acquisition and leveraged finance refers to the legal and financial structuring of transactions where entities or investors seek to acquire companies or assets, often through borrowing or by using a significant amount of debt (leverage). In Amman, Hashemite Kingdom of Jordan, this area of law encompasses a blend of commercial, banking, securities, and company law, with the aim to facilitate mergers, acquisitions, management buyouts, and similar large-scale corporate transactions. Lawyers in this field guide clients through all legal considerations, compliance, structuring, and negotiations specific to local and regional regulations.
Legal counsel is crucial for any stakeholder contemplating acquisition or leveraged finance transactions in Amman. You may need a lawyer for the following reasons:
Jordan boasts a well-developed legal framework supporting acquisition and leveraged finance. Key laws and regulations include the Companies Law, Banking Law, the Jordan Securities Law, and regulations from the Central Bank of Jordan. Foreign investors must also consider investment restrictions for certain sectors and seek regulatory approvals for direct or indirect acquisitions of local companies.
Secured financing is governed by the Civil Code and specific laws guiding the registration and enforcement of securities, such as mortgages and pledges. The bankruptcy and insolvency regimes are relevant for leveraged acquisitions, especially in assessing lenders' rights on default. Anti-money laundering regulations and competition laws also apply to major corporate finance transactions.
Specific documentation requirements, formalities for transferring shares or assets, public offer rules, and Central Bank of Jordan notification and consent requirements may affect the timing, structure, and feasibility of proposed transactions.
Leveraged finance involves raising debt to fund acquisitions or corporate transactions. In Jordan, it is often used for mergers, acquisitions, management buyouts, and major corporate restructuring where companies or investors seek external funds, primarily via bank loans or capital markets.
Yes, certain sectors in Jordan are subject to foreign ownership restrictions or requirements for local participation. Approvals may be needed from the Companies Control Department or other regulatory authorities, depending on the sector.
The main laws are the Companies Law, the Banking Law, Jordan Securities Law, Civil Code (for secured transactions), and Central Bank regulations. Additional competition and anti-money laundering laws may also be relevant.
Collateral can include mortgages over property, pledges on shares, receivables, or movable assets. The creation and perfection of security interests require registration at relevant governmental registries to be enforceable.
Yes, similar to many jurisdictions, a Jordanian company is generally restricted from giving financial assistance for the acquisition of its own shares, though exceptions or structuring alternatives may be available in certain circumstances.
Due diligence in Jordan covers legal, financial, and regulatory aspects - including verification of corporate status, licenses, material contracts, litigation, employee matters, and compliance with local laws.
Often, regulatory approvals are needed, particularly from the Central Bank of Jordan for financial sector deals, Jordan Securities Commission for public companies, and competition authorities for large or sensitive transactions.
Timelines vary depending on complexity, sector, and regulatory approval requirements. It typically ranges from a few weeks for private deals to several months when approvals or extensive due diligence are required.
If a borrower defaults, the lender may enforce its security interests, take recovery actions in local courts, or initiate insolvency or bankruptcy proceedings under Jordanian law. Local enforcement procedures must be followed.
Although Jordan has a conventional banking sector, Shariah-compliant (Islamic) acquisition finance structures are increasingly common, especially for clients seeking compliance with Islamic finance standards.
For more information or regulatory guidance on acquisition and leveraged finance in Amman, the following organizations and resources can be valuable:
If you are considering a leveraged acquisition or complex finance transaction in Amman, Hashemite Kingdom of Jordan, it is essential to:
Taking these steps with professional legal guidance will help minimize risks and ensure compliance with local laws, increasing the likelihood of a successful acquisition or financing deal in Jordan.
