| NEWS ARCHIVES |
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| JAL to be restructured under government plan this week |
| 26 Oct 2009 |
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Ailing Japan Airlines (JAL) will reportedly restructure itself under a state-backed corporate turnaround firm.
Local media say the Japanese government will announce a turnaround plan for JAL by the end of this week.
The government will also consider an injection of public funds after the plan is finalised.
The state-backed Enterprise Turnaround Initiative Corp. of Japan is said to be in charge of breathing life back into the carrier.
The government launched the quasi-public agency earlier this month to help debt-laden companies that are seen as having the potential to recover.
The agency may guarantee loans extended by the Development Bank of Japan and other JAL creditors, or it may lend to the company directly.
JAL needs a bridge loan of about 200 billion yen or about 2.2 billion US dollars by the end of this year.
Further, Japan’s government may also be mulling a special law to cut the carrier's high pension payouts
JAL's shortfall of pension reserves has reached about 330 billion yen, placing pressure on its management. |