Japan Airlines may negotiate debt restructuring: Sources
Published on Tue, Nov 10, 2009 at 15:38 | Source : Reuters
Updated at Tue, Nov 10, 2009 at 16:37
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Japan Airlines may negotiate debt restructuring: Sources
A government task force working on a revival plan for Japan Airlines Corp is considering using a debt restructuring mediation scheme to help ease the airline's financing woes, two sources familiar with the matter said.
A government task force working on a revival plan for Japan Airlines Corp 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.
