ID :
90740
Fri, 11/20/2009 - 23:39
Auther :
Shortlink :
https://www.oananews.org//node/90740
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DBJ, other creditors agree to suspend JAL's debt repayment+
NA_NEWS
TOKYO, Nov. 20 Kyodo -
State-owned Development Bank of Japan and other creditors agreed Friday to
suspend repayment of debts held by struggling Japan Airlines Corp. as it seeks
an out-of-court restructuring process, sources close to the matter said.
The DBJ and JAL are also expected to sign an agreement as early as on Tuesday
that would allow the bank to extend a pool of about 100 billion yen in bridge
loans to Japan's top airline which has been feared to run out of cash at the
end of this month, the sources said.
Earlier in the day, JAL held a meeting with its creditors after it recently
applied for an arbitration scheme called ''alternative dispute resolution.''
Under the process, a noncourt third-party will act as an intermediary between
the airline and its creditors to enable suspension of loan payments.
The creditors also agreed to allow DBJ to redeem the bridge loans to be
extended to JAL on a preferential basis in view of the fact that the bank will
aid the airline with credit that will not be guaranteed by the government.
In addition to the DBJ loans, JAL's three major private creditor banks --
Mizuho Corporate Bank, the Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui
Banking Corp. -- are also expected to provide around 25 billion yen in loans
that will be guaranteed by the government-backed Japan Bank for International
Cooperation.
The airline, which expects its fourth annual loss in five years, is also
seeking support from a government-backed corporate turnaround body -- the
Enterprise Turnaround Initiative Corp. of Japan.
JAL is expected to withdraw from the ADR scheme once the entity decides on a
broader financial package for the airline as early as in January.
The airline incurred a group net loss of 131.22 billion yen for the
April-September period, the biggest-ever since the carrier integrated
operations with Japan Air System in 2002, as travel demand plummeted on the
back of a global economic downturn and the spread of the new influenza.
==Kyodo
2009-11-20 22:44:53
TOKYO, Nov. 20 Kyodo -
State-owned Development Bank of Japan and other creditors agreed Friday to
suspend repayment of debts held by struggling Japan Airlines Corp. as it seeks
an out-of-court restructuring process, sources close to the matter said.
The DBJ and JAL are also expected to sign an agreement as early as on Tuesday
that would allow the bank to extend a pool of about 100 billion yen in bridge
loans to Japan's top airline which has been feared to run out of cash at the
end of this month, the sources said.
Earlier in the day, JAL held a meeting with its creditors after it recently
applied for an arbitration scheme called ''alternative dispute resolution.''
Under the process, a noncourt third-party will act as an intermediary between
the airline and its creditors to enable suspension of loan payments.
The creditors also agreed to allow DBJ to redeem the bridge loans to be
extended to JAL on a preferential basis in view of the fact that the bank will
aid the airline with credit that will not be guaranteed by the government.
In addition to the DBJ loans, JAL's three major private creditor banks --
Mizuho Corporate Bank, the Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui
Banking Corp. -- are also expected to provide around 25 billion yen in loans
that will be guaranteed by the government-backed Japan Bank for International
Cooperation.
The airline, which expects its fourth annual loss in five years, is also
seeking support from a government-backed corporate turnaround body -- the
Enterprise Turnaround Initiative Corp. of Japan.
JAL is expected to withdraw from the ADR scheme once the entity decides on a
broader financial package for the airline as early as in January.
The airline incurred a group net loss of 131.22 billion yen for the
April-September period, the biggest-ever since the carrier integrated
operations with Japan Air System in 2002, as travel demand plummeted on the
back of a global economic downturn and the spread of the new influenza.
==Kyodo
2009-11-20 22:44:53
