23-Nov-2010 9:32 AM

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.

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More