TOKYO, Jan. 12 (Xinhua) -- Shares of Japan Airlines (JAL) were ask-only on Tuesday morning in Tokyo as fears mount that the state-backed fund in charge of restructuring Asia's largest carrier may lean towards delisting the company, following its expected filing for bankruptcy protection.

    Investors dumped stock in the stricken carrier as rumors spread that The Enterprise Turnaround Initiative Corp. of Japan (ETIC), the state-backed body charged with restructuring the ailing carrier, may hold shareholders accountable for the carrier's downturn, along with creditors who may be asked to write-off some of JAL's 16 billion U.S. dollars in debt, should the carrier file for protection, sources with knowledge of the matter said.

    Bankruptcy would effectively negate the value of JAL's shares, brokers said. Shares in JAL were untraded due to a flood of sell orders at 37 yen, down 45 percent from Friday's close.

    The ETIC, is still deliberating the issue, having already decided to limit JAL's potential alliances with either one of the U.S. carriers, Delta or American Airlines, to one of "tie-up," rather than "partnership," a report in the Nikkei business daily said.

    JAL is still short of the two-thirds support it needs from retirees to cut pension payments, raising anxiety among employees, retirees and investors that its pension fund may be dissolved as part of its bankruptcy filing procedure.

    According to a JAL spokesman, no further updates were available regarding how many retirees have agreed to the cuts, which are as much as a one third reduction in pension provision, but indicated the firm would continue its efforts to persuade them beyond the deadline if it fails to secure the quota of consent it needs by the alloted deadline of Tuesday.

    JAL retirees are divided about the pension cuts, as many retirees still feel a deep sense of loyalty to the company, despite their employment having run its course.

    If JAL fails to secure support from its retirees about pension cuts, the ETIC's intervention may lead to even larger cuts for employees and retirees, sources close to the matter said.

    However, the ETIC will pump some 300 billion yen into the cash-strapped carrier once it files for bankruptcy and a significant amount of debt will be written off.

    The ETIC's window for filing for protection is being set for some time between January 19 and January 22 for the carrier to file for bankruptcy and for the ETIC to officially announce its plans to offer its support.

Special Report:  Global Financial Crisis