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Japan Airlines’ Banks Said to Accept Bankruptcy Plan
By Finbarr Flynn, Chris Cooper and Kiyotaka Matsuda
Jan. 10 (Bloomberg) -- Japan Airlines Corp.’s largest banks are set to agree to a bankruptcy of Asia’s largest carrier, said four people familiar with the matter.
Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. are prepared to go along with a proposed court-led reconstruction, said three people who declined to be identified because the matter is private. The state-owned Development Bank of Japan already agreed to the bankruptcy, according to the other person.
Japan Air is seeking new investors and loan write-offs as it restructures after posting three losses in four years. The government will hold talks on JAL’s future as soon as Jan. 12, Transport Minister Seiji Maehara told reporters two days ago in Tokyo after meeting with Prime Minister Yukio Hatoyama.
“JAL can be reborn as an attractive company should it undergo decisive restructuring,” said Ryota Himeno, an analyst at Mitsubishi UFJ Securities Co. “It’s a positive for JAL if the reports on bankruptcy are true.”
Mizuho spokeswoman Masako Shiono, Mitsubishi UFJ spokesman Takashi Takeuchi and JAL spokeswoman Sze Hunn Yap declined to comment. Sumitomo Mitsui spokeswoman Chika Togawa wasn’t immediately available for comment and calls to the media relations office of the Ministry of Finance, which oversees Development Bank, went unanswered outside regular office hours.
JAL’s Debt
JAL owed 429 billion yen ($4.6 billion) to its four largest creditors at the end of March, according to the company.
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Jan. 10 (Bloomberg) -- Japan Airlines Corp.’s largest banks are set to agree to a bankruptcy of Asia’s largest carrier, said four people familiar with the matter.
Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. are prepared to go along with a proposed court-led reconstruction, said three people who declined to be identified because the matter is private. The state-owned Development Bank of Japan already agreed to the bankruptcy, according to the other person.
Japan Air is seeking new investors and loan write-offs as it restructures after posting three losses in four years. The government will hold talks on JAL’s future as soon as Jan. 12, Transport Minister Seiji Maehara told reporters two days ago in Tokyo after meeting with Prime Minister Yukio Hatoyama.
“JAL can be reborn as an attractive company should it undergo decisive restructuring,” said Ryota Himeno, an analyst at Mitsubishi UFJ Securities Co. “It’s a positive for JAL if the reports on bankruptcy are true.”
Mizuho spokeswoman Masako Shiono, Mitsubishi UFJ spokesman Takashi Takeuchi and JAL spokeswoman Sze Hunn Yap declined to comment. Sumitomo Mitsui spokeswoman Chika Togawa wasn’t immediately available for comment and calls to the media relations office of the Ministry of Finance, which oversees Development Bank, went unanswered outside regular office hours.
JAL’s Debt
JAL owed 429 billion yen ($4.6 billion) to its four largest creditors at the end of March, according to the company.
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.
.
.
.
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