JAL seeks to go public again by end of 2012+

TOKYO, Aug. 20 Kyodo - Japan Airlines Corp., which is undergoing state-backed corporate rehabilitation, will seek to go public again by the end of 2012 under the recovery plan it must submit to the Tokyo District Court by Aug. 31, sources familiar with the matter said Friday.

Through the public offering of its shares, JAL aims to repay 350 billion yen
worth of capital that its rehabilitation administrator, the state-backed
Enterprise Turnaround Initiative Corp. of Japan, will inject into the airline,
the sources said.
The airline believes that relisting should be done at an early date as a way to
ensure the independence of its management and serve as a symbol of the
airline's rehabilitation, the sources said.
JAL was delisted from stock exchanges in February after filing for bankruptcy
protection in mid-January.
Major creditor banks are expected to formally approve the rehabilitation plan
by Aug. 27, the sources said.
Mizuho Corporate Bank, the Bank of Tokyo-Mitsubishi UFJ, and Sumitomo Mitsui
Banking Corp., will rescind their earlier position of seeking the purchase by
ETIC of remaining debt following the debt waiver.
With the concerned parties agreeing on the rehabilitation plan of JAL,
negotiations will begin on the carrier's request to the banks for fresh loans
of about 320 billion yen.
A senior official of one of the major banks said, ''Even if we agreed on the
rehabilitation plan, providing fresh loans is an entirely different issue.''
According to the sources, 31 banks including the governmental Development Bank
of Japan will waive 383 billion yen in loans to JAL. If corporate bonds and
financial products are included, the requested debt waiver totals 521.5 billion
yen.
Japan's former flag carrier has been stepping up efforts to come up with
turnaround measures, including cutting personnel and unprofitable routes.
==Kyodo