A government-backed corporate turnaround body has told Japan Airlines Corp. that part of the carrier's rehabilitation plan may entail liquidation, sources said.
The Enterprise Turnaround Initiative Corp. of Japan, charged with the reconstruction of the cash-strapped airline, also submitted a separate proposal that includes the option of a debt waiver of more than ¥200 billion by JAL's creditor banks, including the government-owned Development Bank of Japan.
The ETIC plans to decide on a financial package for JAL possibly by late January, but regardless of which of the two schemes the entity chooses, the government will fully back JAL to ensure no international or domestic flight disruptions occur, the sources said.