Japanese cabinet ministers have reportedly been meeting today to have final stage discussions about helping Japan Airlines (JAL) undergo a financial restructuring.
Reports in Japan, citing unnamed government officials, say the country's finance minister Naoto Kan, transport minister Seiji Maehara and other cabinet ministers met today.
The reports say this is the final stage of discussions and there are two different plans on the table - one is to have JAL restructure via bankruptcy and the other is to restructure out-of-court.
JAL's private financial creditors - such as Mizuho Corporate Bank and Sumitomo Mitsui Banking Corporation support an out-of-court solution. But the state-backed Enterprise Turnaround Initiative Corporation is looking at a financial bail-out that involves JAL going into bankruptcy protection, add the reports.
JAL late last year turned to the government for financial help after posting large losses. A report two days ago in Japan's Nikkei newspaper, citing unnamed sources, said JAL may report a full-year loss of ¥1.23 trillion ($13.3 billion), a figure that has surprised analysts and led to a dip in JAL's share price.
Source: Air Transport Intelligence news
