A government-backed corporate turnaround body is making final arrangements to use around ¥700 billion in public funds for loans and investments to rehabilitate Japan Airlines Corp. through court-backed bankruptcy proceedings, according to sources.
Enterprise Turnaround Initiative Corp. of Japan, funded by both the government and private financial institutions, plans to create a credit line of around ¥400 billion and invest about ¥300 billion in Japan's top carrier, the sources said Wednesday.
The entity, which can currently raise up to ¥1.6 trillion in government-guaranteed funds, plans to ask JAL's main creditor banks to waive about ¥300 billion in debt and require the carrier to cut over 10,000 jobs.