State-owned Development Bank of Japan and other creditors agreed Friday to let struggling Japan Airlines Corp. suspend the repayment of its debts while the carrier is seeking out-of-court restructuring, sources said.
The DBJ and JAL may also sign an agreement possibly Tuesday that would allow the bank to extend a pool of about ¥100 billion in bridge loans to Japan's top airline, which is facing the prospect of running out of cash at the end of this month, the sources said.
Earlier in the day, JAL held a meeting with its creditors after it recently applied for an alternative dispute resolution arbitration scheme. Under the ADR process, a noncourt third-party will act as an intermediary between the airline and its creditors to enable the suspension of loan payments.