JAL may negotiate debt restructuring -sources

Tue Nov 10, 2009 8:12am GMT
 
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TOKYO, Nov 10 (Reuters) - A government task force working on a revival plan for Japan Airlines Corp (9205.T) is considering using a debt restructuring mediation scheme to help ease the airline's financing woes, two sources familiar with the matter said.

The task force is considering a scheme recently introduced in Japan called "Alternative Dispute Resolution" under which a third party would mediate between JAL and its creditors, allowing for the temporary suspension of loan payments.

This would reduce the amount of funds JAL needs to secure in the near term and lower the bar to securing the bridge loan it needs from its creditors to avoid running out of cash, the sources said. (Reporting by Taro Fuse and Yoshifumi Takemoto)

 

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