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JAL to repay USD2.38bn loans ahead of schedule: report

19-Dec-2011 10:38 AM

Japan Airlines (JAL) reportedly plans to repay JPY185 billion (USD2.38 billion) of its JPY200 billion (USD2.57 billion) bank loans maturing in Jan-2013 this month. According to reports in The Nikkei, the carrier could reportedly repay the remaining JPY35 billion (USD450 million) by spring 2012. The carrier, which has loans to 11 financial institutions, will be able to replay the loan ahead of schedule due to improved earnings. Last week, Enterprise Turnaround Initiative Corp of Japan (ETIC) stated (13-Dec-2011) it was seeking to hire banks for a global offering of shares in Japan Airlines. The agency plans to select the banks for the airline’s relisting by mid-Jan-2012, with submissions due before the end of 2011. ETIC, which owns most of the airline’s shares, is mandated to sell its stake by Jan-2013, three years after it took over the carrier. ETIC has around 97% of voting rights in the carrier after injecting JPY350 billion (USD4.5 billion) of capital into the carrier.  [more - original PR in Japanese]