Japan Airlines files for bankruptcy protection.
Japanese airline group JAL announced today that it has filed an application to the Enterprise Turnaround Initiative Corporation of Japan (ETIC) for support for its restructuring.
JAL, which includes Japan Airlines Corporation, Japan Airlines International Co Ltd and JAL Capital Co Ltd, said that ETIC has agreed to provide support.
The application was submitted jointly with the Development Bank of Japan (DBJ), Japan Bank for International Cooperation, Mizuho Corporate Bank Ltd, The Bank of Tokyo-Mitsubishi UFJ Ltd and Sumitomo Mitsui Banking Corporation.
JAL has also filed petitions for commencement of corporate reorganisation proceedings with the Tokyo District Court today and the court has appointed ETIC and Eiji Katayama Esq as reorganisation trustees.
The trustees have obtained comprehensive court approval that authorises JAL's continued payment of certain commercial transaction claims, including payments for fuel and other supplies and services, plus leases and other related obligations. JAL will also be able to obtain DIP financing from DBJ and ETIC, which will be sufficient to continue its business.
Customers' tickets and frequent flyer miles are expected to be fully protected and JAL's frequent flyer programme will continue as usual. The group's flight operations will not be interrupted.
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|Publication:||Airline Industry Information|
|Date:||Jan 19, 2010|
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