Billions in JAL debt to be waived: report


As part of its restructuring program, Japan Airlines is reportedly looking into getting some JPY519 billion (US$5.6 billion) in debts waived by its major creditors.

According to a report by Bloomberg, the move is part of JAL’s overarching restructuring program which will also include massive job cuts, and capacity cuts.

Declaring official bankruptcy on the 19th of January, JAL is now able to completely re-haul its operations as well as waiving a portion of its debts in exchange for cutting its capital down to zero.

This move is likely to hurt its biggest lenders the state-owned Development Bank of Japan, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, Mizuho Financial Group, and Bank of Tokyo-Mitsubishi.
Source = e-Travel Blackboard: W.X
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