JAL discusses Bankruptcy

JAL, Japan Airlines, is a company that was once known for being the largest and most successful airliner in Asia by revenue. However, since the recession struck in 2008 the company has been struggling to remain afloat. Previously there have been rumors of a government takeover or selling off to another company. Now word has surfaced that bankruptcy is an option, too.

JAL, Asia’s largest airline by revenue, applied in October for help from the Enterprise Turnaround Initiative Corp of Japan (ETIC), a body of turnaround specialists established to bail out companies with state-guaranateed funding. [ID:nT128108]

The ETIC has discussed with JAL’s creditors the possibility of using a Chapter 11-style bankruptcy procedure if it decides to support the carrier, but has not ruled out a restructuring outside of bankruptcy court, the two sources said.

When one of the largest and most successful companies in Asia is discussing bankruptcy, you know it has been a bad year for the economy worldwide.