Japan Airlines shares disappear 12%
Stock Report February 15th, 2010
Japan Airlines (JAL) shares was recorded again vanish in Tokyo trading after the largest airline bankruptcy of Japanese origin.
As reported by AFP on Saturday (9/1/2010), observed JAL shares plummeted 11.8 percent and closed at the level of 67 yen per share. The Japanese government is currently trying to save JAL from bankruptcy with guaranteed support from the public to continue to run this flight.
Minister of Transportation of Japan, Seiji Maehara also reportedly has met with Finance Minister Naoto Kan on Friday with a party that would restructure the JAL Enterprise Corp. Turnaround Initiative.
But unfortunately, the Japanese Government refused when JAL has been bankrupt. But on the one hand, the government rejected the bankruptcy administration process, which can help the process of restructuring JAL is likely to leave its investors.
“We want the Turnaround Enterprise Initiative Corp. JAL can rebuild by using funds from the public,” said Maehara.
The plan of this penyelematan new airline will be decided on January 19 next, which will use the rescue package from bankruptcy. Reportedly, the process of saving them will require funds of 300 billion yen, equivalent to $ 3, 2 billion. These investment funds will be used to accommodate the bankruptcy JAL by asking the lender to seek a loan of 300 billion yen.
JAL has been known to borrow funds from the government since 2001 to finance the company’s debts are accumulating. In addition, the company loses approximately $ 1, 5 billion during the six-month period is also planned to cut thousands of workers and reduce flight routes as part of a way to restore the company’s profits.
For information, JAL may cut more than 10,000 employees and recorded a restructuring of their debt financing of 1.13 trillion yen as of March 31 next year on year. JAL also has offered to finance their debt by American Airlines and Delta Air Lines, where the two companies have competed for this Japanese company and will expand in Asian markets.
On the other hand, the media reported when JAL advised to collaborate with Delta and joined the Global SkyTeam, Oneworld and leaving group which also has American Airlines. Nevertheless, Wall Street Journal reported this week when American Airlines raised their investment offer from USD300 million to USD1, 4 billion.
