JAL presents draft final revival plan to creditor banks+

TOKYO, Aug. 2 Kyodo -
Japan Airlines Corp. and its bankruptcy administrator on Monday presented a
draft final plan for the carrier's rehabilitation to its creditor banks,
featuring debt waivers totaling 521.5 billion yen, sources familiar with the
matter said.
Mizuho Corporate Bank and other major creditor banks are expected to accept the
plan, paving the way for JAL and the government-backed Enterprise Turnaround
Initiative Corp. of Japan to submit it to the Tokyo District Court by the
deadline at the end of August, the sources said.
In the draft plan, JAL, which filed for bankruptcy protection in January, asks
its creditor banks to waive 383 billion yen in loans or 87.5 percent of their
uncollateralized loans to the carrier. Including bonds and financial
derivatives, the requested debt waiver totals 521.5 billion yen.
The plan envisages JAL posting a group net profit of 111.9 billion yen in
fiscal 2014 to March 31, 2015. Operating costs, which amounted to 1.63 trillion
yen in fiscal 2009, are projected to decrease 440 billion yen in fiscal 2014
through workforce cuts and other restructuring measures to help JAL book an
operating profit of 133.1 billion yen in the year.
But the banks are cautious about extending 319.2 billion yen in fresh loans
requested by JAL and are set to hold negotiations with the airline and ETIC
after the plan is submitted to the Tokyo court, the sources said.
==Kyodo