Struggling Japan Airlines (JAL), undergoing a state-backed restructuring, has asked its creditors for another debt waiver as it races to meet a deadline to submit its turnaround plan, reports said yesterday.
The airline has asked its creditor banks to waive an additional ¥50 billion (US$570 million) of debt, the Yomiuri Shimbun and business daily Nikkei said.
If the creditors agree to the proposal, they would be forgiving 90 percent of JAL’s debt, including corporate bonds and derivatives, up from 83 percent, the reports said.
The carrier said on Wednesday that the combined negative net worth of the three JAL core group companies that filed for bankruptcy in January swelled to ¥1 trillion, ¥100 billion more than earlier estimates of liabilities that exceed assets.
JAL has also asked for a fresh loan of ¥360 billion, the reports said, adding that the negotiations with the creditor banks were likely to proceed with difficulty.
It is due to submit a finalized turnaround plan to the Tokyo District Court at the end of next month and the reports said that the banks were reluctant to provide further support.
A JAL spokesman declined to comment on the reports.
“It’s hard for us to comment on things that are still at the negotiation table and the figures could change until the formal agreement is sealed,” he said.
JAL has said it would scrap 28 international routes and close 11 international bases, while 50 domestic routes will be terminated. The company, which posted a US$2 billion loss for the nine months to December, also plans more than 15,000 job cuts.
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