JAL, Asia’s Largest Airline, Near Bankruptcy
October 16th, 2009Via: Reuters:
Japan Airlines Corp shares slid 12 percent to a record low on Friday as investors suggested bankruptcy may be an option for Asia’s biggest airline by revenue, even as the government again pledged to support the troubled carrier.
“There’s increasing concern about the future of the company and whether it’s heading for a GM-style bankruptcy or not,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.
The airline, plagued with high costs in a severe industry downturn, has asked creditors for 600 billion yen ($6.6 billion) in financial aid, including 300 billion yen in debt waivers and debt-for-equity swaps, as part of a restructuring plan, according to two sources familiar with the matter.
JAL shares fell to 100 yen, their lowest since they were re-listed in 2002. By the close, the stock was quoted at 101 yen, down more than 11 percent. The shares have lost a quarter of their value this week.
