Skymark Airlines Inc., the budget carrier that filed for bankruptcy last week, won a pledge from private-equity fund Integral Corp. for ¥9 billion to support it through the restructuring process.
Integral will provide Skymark with financing to maintain stable cash flow during the process, the airline said Thursday in a statement to the Tokyo Stock Exchange.
The ¥9 billion will be converted into equity in the company, Nobuo Sayama, a partner at Integral, told reporters.
Skymark, which filed for bankruptcy last week, said it will also seek sponsors other than Integral.
Japan’s third-largest carrier is trying to survive amid competition with Japan Airlines Co. and ANA Holdings Inc. The budget airline told its creditors Wednesday that it expects to prepare a business recovery plan by the end of May.
Skymark plans to put the proposal to a vote by creditors before submitting it for court approval, the Tokyo-based company said in a note to participants at a creditors’ meeting Wednesday.
It intends to start implementing the proposal by the end of July, according to the note. Skymark spokeswoman Yuri Nagano declined to comment on the meeting.
The airline had to seek bankruptcy protection after a decision to purchase six Airbus Group NV A380 superjumbos flopped last year. Skymark owes creditors led by the aircraft-leasing arm of General Electric Co. about $520 million, according to documents obtained by Bloomberg.
Sayama said Integral will seek additional partners for Skymark, both inside and outside the airline industry, but will support the airline even if none are found.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.