Aviation News Item: 04139

19th Jan 2010

Source: evaint.com

Japan Airlines Corporation, Japan Airlines International Co., Ltd. and JAL Capital Co., Ltd. (collectively, "JAL" or "we"), has filed, jointly with the Development Bank of Japan ("DBJ"), Japan Bank for International Cooperation, Mizuho Corporate Bank, Ltd., The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Sumitomo Mitsui Banking Corporation (collectively, "Financial Institution Applicants"), an application to the Enterprise Turnaround Initiative Corporation of Japan ("ETIC") for support for restructuring and received the decision from ETIC to provide support.

In addition, JAL filed the petitions for commencement of corporate reorganisation proceedings with the Tokyo District Court (the "Court"). The Court entered an order commencing the proceedings and appointed ETIC and Eiji Katayama, Esq. as reorganisation trustees ("Trustees").

With respect to the certified alternative dispute resolution procedures as prescribed in the Act on Special Measures for Revitalisation of Industrial Vitality and Innovation of Industrial Activities (the "Turnaround ADR Procedure") that JAL had begun, the termination of those procedures was decided by the Japanese Association of Turnaround Professionals ("JATP"), a private operator of the Turnaround ADR Procedure, prior to the filing of the petitions for commencement of corporate reorganization proceedings.

The Trustees have obtained comprehensive Court approval authorising JAL's continued payment of certain commercial transaction claims, including payments for fuel and other supplies and services, as well as leases and other related obligations. Also, JAL will be able to obtain the DIP financing from DBJ and ETIC, the amount of which will be sufficient to continue our business. Further, we understand that customers' airline tickets and frequent flyer miles will be fully protected and the frequent flyer programme is expected to be continued as it has been conducted.

Therefore, the continuation of the group's flight operations will not be interrupted. Additionally, effects on customers will be avoided and JAL Group's business will continue as it has been conducted.

While receiving the support from ETIC and sound assistance from related parties including the Japanese government and under the supervision of the Court and the leadership of the Trustees, there is confidence that the swift revitalisation of JAL Group will be achieved, after which JAL Group will be reborn as a leading airline group that could again lead the global airline industry.

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