TOKYO, Jan. 12 (Xinhua) -- Japan's three biggest banks have approved the government's rehabilitation plan for Japan Airlines Corp., which would involve the debt-ridden carrier filing for bankruptcy protection under the Corporate Rehabilitation Law, reports said Tuesday.
JAL's commercial creditor banks, the Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation and Mizuho Corporate Bank, are expected to deliver their official acceptance statements by Thursday, senior representatives from the banks said.
The banks' preliminary approval of a court-led rehabilitation plan for Asia's largest carrier, followed meetings earlier on Tuesday between the banks and transport minister Seiji Maehara.
On the back of news of JAL's impending bankruptcy and in a timely preemptive strike aimed at preventing JAL defecting to rival Delta Airlines, American Airlines and other Oneworld alliance members will offer a package amounting to 2 billion U.S. dollars in financial assistance to the struggling carrier, Oneworld officials said Tuesday.
The package includes contributions from British Airways, Qantas Airways and Cathay Pacific Airways, the American Airlines' statement said.
The U.S. carrier on Tuesday has also guaranteed 100 million U.S. dollars in fresh revenue over the first three years of the prospective tie-up, according to media reports.
Delta Airlines and their Skyteam partners' offer to JAL stands at around 1 billion U.S. dollars, however JAL President and CEO, Haruka Nishimatsu, has been quoted as saying, "Switching to SkyTeam would involve a big process of changing systems, but we need to consider whether or not to value Asia. In that sense, SkyTeam has many Asian carriers," he has said.
JAL has said it will make a decision on which overseas partner it will choose in January.
Japanese gov't seeks bank approval for JAL bankruptcy
TOKYO, Jan. 12 (Xinhua) -- Japan's Minister of Land, Infrastructure, Transport and Tourism, Seiji Maehara, met with Japan Airline Corporation's major creditor banks on Tuesday to seek approval for a court-led rehabilitation plan for Asia's largest carrier, that will involve the filing for bankruptcy protection.
The government is expected to issue a statement later today to confirm its stance on the matter and to allay public concerns about the carrier's operating potential, an issue JAL's president and CEO, Haruka Nishimatsu, who has vocally opposed the idea of bankruptcy, believes will negatively impact customer sentiment towards Japan's oldest and largest carrier, sources said. Full story
JAL shares untraded due to massive sell orders, bankruptcy looks likely
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. Full story
Nikkei hits 15-month high on weaker yen, JAL dives
TOKYO, Jan. 8 (Xinhua) -- Japan's 225-issue Nikkei Stock Average hit a 15-month closing high Friday, buoyed by exporter and tech-related issues rising with a robust U.S. dollar in early trade.
Japan's key benchmark Nikkei gained 116.66 points, or 1.09 percent, from Thursday's directionless trading, to close at 10,798.32, ahead of a 3-day weekend in Japan, which left circumspect investors with little choice but to lock in profits ahead of key U.S. employment data due out on Friday. Full story
JAL may be bankrupt within weeks
TOKYO, Jan. 8 (Xinhua) -- Japan Airlines (JAL) may be declared bankrupt as early as Jan. 19 under a government plan to maximize transparency while restructuring the struggling company, according to local media on Friday.
The government plan to seek bankruptcy for JAL will likely be opposed by private creditors, who are likely to want any restructuring plan to take place behind closed doors and away from public scrutiny. Full story
Special Report: Global Financial Crisis
