The government and state-backed Enterprise Turnaround Corp. of Japan are considering extensively shrinking the international operations of Japan Airlines Corp. as part of the carrier's rehabilitation plan, which is likely to entail court-backed bankruptcy filing, sources said Friday.
ETIC, tasked with JAL's reconstruction, is aiming to announce a bailout package later this month and will work to persuade JAL's key commercial creditor banks, which have favored an out-of-court reorganization through debt forgiveness, to heed its plan.
The government is making final arrangements to turn around Japan's top airline through the filing of bankruptcy under the Corporate Rehabilitation Law in a bid to ensure transparency in a process that is likely to entail a massive use of public funds.