Q Shoe Guy

日航再建、法的整理を検討　支援機構が私的整理と２案提示
12月28日8時46分配信 産経新聞

拡大写真
経営危機の続く日本航空（日航・ＪＡＬ）の航空機＝東京都大田区の羽田空港（早坂洋祐撮影）（写真：産経新 聞）
　日本航空の経営再建問題で、同社が支援要請している官民出資の「企業再生支援機構」が、法的整理による再 建を検討していることが２８日、分かった。

　 ［フォト］作家、柳田邦男氏がＪＡＬに提言

　日航や日本政策投資銀行など主力銀行団に伝えたもようだ。政府内には、運航に支障が出かねない法的整理に 慎重な意見が強いが、支援機構は、透明性の高い手法で、債務の圧縮などが行える法的整理も選択肢としている 。

　これまでの再建案では、銀行団の債権放棄による私的整理を軸に検討してきた。今後、支援機構は銀行団や政 府と調整しながら、私的整理と法的整理のどちらの方が、再建が確実になるか検討を進める方針。その上で、来 年１月にも日航に対する支援を正式に決める方針だ。

　日航の再建をめぐっては、最大の焦点である企業年金の減額で、３分の２以上のＯＢの同意を得る作業を進め ている。日航はＯＢに年金支給額を３０％強削減する案を提示。来年１月１２日までの回答を求め ている。

　年金減額は、支援機構による出融資など公的資金の活用の前提条件。同意が得られなかった場合、政府は特別 立法による強制減額の措置を検討している。支援機構も自助努力による年金減額に失敗すれば、法的整理を強く 求める可能性がある。



JAL bankruptcy proposed as option to banks: sources
1 hour, 43 minutes ago
TOKYO (Reuters) - Bankruptcy has been proposed by a state-backed fund as an option in the restructuring of Japan Airlines Corp, two sources familiar with the matter said.

The state-backed Enterprise Turnaround Initiative Corp of Japan (ETIC) has been holding talks with creditor banks on how to revive JAL, and is expected to make a final decision on whether to support the struggling carrier next month.

In those talks the ETIC has discussed using a Chapter 11-style bankruptcy procedure as part of a potential revival plan, but has not yet ruled out an out-of-court restructuring in coordination with main creditors, the two sources said.

The sources spoke on condition of anonymity given the sensitivity of the matter.

No one at ETIC or JAL was immediately available for comment.

Shares of JAL were unchanged at 97 yen. The benchmark Nikkei average was up 0.7 percent.

JAL's stock has lost more than half its value this year amid growing worries that it could face bankruptcy.

Its main creditors, which include the state-owned Development Bank of Japan and the country's top three lenders, remain keen to keep the carrier out of bankruptcy court, banking sources have said.

JAL, weighed down by $15 billion in debt and struggling to cut a 331 billion yen ($3.6 billion) pension shortfall, applied for a bailout from the ETIC in October.

At the same time JAL is being courted by American Airlines and Delta Air Lines. The U.S. carriers have made rival offers of financial aid, eyeing a greater foothold in Japan and access to JAL's network to the rest of Asia.

JAL says it will make a decision on which overseas partner it will choose by early January.

(Reporting by Nathan Layne and Nobuhiro Kubo; Editing by Michael Watson)

brenc3

I'm not saying anything new here, but in many cases bankruptcy wouldn't be the worst thing - it allows a company (or individual) to discharge and restructure debt, void contracts, and develop a plan to become profitable - ideally, anyway. I don't like how many of the US carriers managed to completely ditch some pension obligations, but returning to profitability and retaining jobs is probably in the broader economy's best interest, given the alternatives.

Does anyone who is better versed in bankruptcy laws of Japan (and economics in general, for that mater) than I know if Japanese bankruptcy is a similar proposition to the US?

3544quebec

I know that it is a matter of opinion and I am not an economist or accountant, but i'd be of the view that it would be in the broader economy's long-term interest to not have companies/managers believe that despite their poor management they can renege on their company's obligations. Perhaps without that option either companies would be better managed or poorly managed companies would not continually be reborn.

brenc3

I agree that it's a fine line to walk; moral hazard can't/shouldn't be removed from management. I'm simply outlining the general rationale for having some form of bankruptcy protection as a company like JAL is Japan's largest airline and a significant employer. Providing them an option to not cease operations overnight when the cash runs out is probably in the country's short-term interest. I just don't know precisely what the options are.

Q Shoe Guy

Although there are many "individuals" who will lose out with this bankruptcy....the biggest losers will be the 3 main lending banks , the finance ministry and the pensioners!......I have a sense that foreign equity will be distasteful and unwelcome by the Japanese banks and Finance Ministry....

Himeno

As long as they stay in OW...

mosburger

This could be said of most present or former state-owned airlines.

Q Shoe Guy

Touche

jamar

I can see some very unhappy pensioners screaming for "anything but bankruptcy" loud enough for the Finance Ministry to put aside its "distaste" for foreign equity in the flag carrier (they'd also do well to remember that it was with NW that JL started).

... but wasn't someone in the government saying that they preferred JL to go SkyTeam? So they're not totally averse to foreign money/control in JL, which leads to the point above. How much are they willing to lose to keep JL entirely in domestic hands (and possibly dead)?

Cedar Jet

This is the Alitalia scenario relived by JAL. AZ is doing just fine now despite all the concerns raised at the time. Wipe the board clean and start again, never fails.

My 2 cents
CJ

atakam

Exactly, and among the 3 big losers one of the main concerns are the pensioners. We saw here in Japan during Dec JAL's CEO Mr Nishimatsu flying around Japan to request permission or negotiate with pension leaders a pension reduction. I think the waste of time and effort of doing this instead of focusing on how to restart clean is a disgrace. The 3 billion USD pension backpack is too big, even if you renegotiate it. How much will be reduced? 1/3 or 1/2? Still you have a load of 1.5-2 billion USD. The theory of JAL bankruptcy is getting more real, if we want to see a successful JAL in the future.

Maehara is holding up the situation by insisting that JAL holds the Japanese flag and is the country's carrier (which I think is not fair for ANA, since both are private companies competing for every single passenger) and JAL old fashioned board is using all "political" resources to keep alive.

I agree with Cedar Jet, AZ and also LX (similar as JAL, LX was the pride of Swiss people carrying the flag. Today both doing fine.

Let us see soon a restructured JAL, without the pension load, without the old 747 fleet, with new overseas partners, with new management, with a share that investors will be willing to buy, and of course with their Japanese quality service.

maeharasmuse

This JAL bankruptcy situation is reminiscent of what happened to Swissair, Pan Am, Sabena, Varig,... with people predicting the govt. would step in to prevent the airline from going belly up - until the very end.

Well, we all know what happened there.

I'ld say: Break her up and let her die already.

I just wonder where they're gonna park the planes.

Don't get me wrong: of course there will be some kind of a restart of sorts - sometime after the New Year. Style LX for SR, SN for SN.

No need for any new investors to throw in good money after bad.

They'll step in later, to pick up the pieces.

But before that can happen, they're gonna have to call back the planes, something to do with international property law and international air law and leasing terms and what not.

Anyway: it's bound to happen sooner than later.

Yesterday's Yomiuri articles [1] [2] [3] give some sort of an idea as to how and when, but I think the real scenario will be a lot more drastic and dramatic. If anything survives (after a complete halt & restart of operations) it will be a much slimmed down company, with a much smaller fleet, much smaller staff levels, industrial undertakings and commercial operations.

I just wonder where they're gonna park the planes...

In other news: the stock ended down 25% at an all time low of 66 JPY.

.

jimyvr

Liquidation is also on the card, which sent JAL shares down 32% at one point on Wednesday (30DEC09)

Rambuster

...and repeat as necessary !

jimyvr

Unlikely scenario, but...

http://mainichi.jp/select/biz/news/2...20024000c.html

Few cabinet ministers considers the idea of transfer all JAL's International routes to ANA. But this is strongly opposed by MLIT as it wants to maintain 2 carriers flying International service.