JAL to request further financial aid as debts surpass assets
Japan Airlines Corp will reportedly require a further JPY100 billion (USD1.1 billion) in financial aid, with the carrier forecasting a larger-than-expected write-down of losses from asset valuations (Dow Jones/Mainichi Japan/Asahi Shimbun, 18/19/21-Jun-2010). JAL's debts are expected to surpass its assets by JPY950 billion (USD10.5 billion) or JPY90 billion (USD994 million) more than predicted. The airline will reportedly request banks to waive loans in excess of JPY500 billion (USD5.5 billion), up more than JPY150 billion from initial estimates, and the Enterprise Turnaround Initiative Corp of Japan (ETIC) to increase its investment in the airline. The carrier's negative net worth is approximately JPY1 trillion (USD11.0 billion), a notable increase from the USD9.6 billion disclosed in Jan-2010. The carrier is expected to announce its progress and restructuring plans by the end of Aug-2010 to the Tokyo District Court.