JAL gains creditor approval for debt waiver and fresh loans

Japan Airlines stated it gained approval from creditors for a rehabilitation plan under which they would waive debts worth more than JPY520 billion (USD6.3 billion) (The Nikkei/Kyodo/AFP/JijiPress, 22-Nov-2010). JAL has also reached a basic agreement for receiving fresh loans of CNY280 billion from its main creditors, five major Japanese banks, as early as Mar-2010. The state-backed Enterprise Turnaround Initiative Corp (ETIC) will seek final court approval for the rehabilitation plan as early as 30-Nov-2010. More than 96% of banks and other creditors had approved the restructuring process. Once the Tokyo District Court approves the rehabilitation plan, ETIC is expected to carry out a public capital injection of JPY350 billion (USD4.2 billion) into the JAL group on 01-Dec-2010.