JAL's credit line to be doubled
The government agreed Jan. 3 to double a special credit line for Japan Airlines Corp. to ¥200 billion. The extra funding was decided at a meeting of Cabinet ministers that included transport minister Seiji Maehara and Deputy Prime Minister Naoto Kan, officials said.
The government's Development Bank of Japan set a credit line of ¥100 billion in November and has already paid out just more than half of that to the carrier.
There have been reports that the government-backed Enterprise Turnaround Initiative Corp., which is overseeing JAL's restructuring, is considering the possibility of having the carrier file for protection from creditors.
The ETIC is expected to decide on a financial package for the carrier later this month.
But JAL President Haruka Nishimatsu said that he is opposed to any bankruptcy filing and has no plans to halt international flights. "Legal liquidation presents an image that will affect us and reduce our client numbers," he said.
The Japan Times Weekly: Jan. 9, 2010 (C) All rights reserved
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