Bankruptcy mooted for Japan Airlines

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Japan's Enterprise Turnaround Initiative Corp (ETIC) has proposed bankruptcy as an option for the restructuring of Japan Airlines (JAL).

ETIC is in talks on the future of JAL with creditor banks, and mooted the possibility of a Chapter 11 style bankruptcy for the ailing carrier, say media reports in Japan quoting anonymous sources.

Chapter 11 style bankruptcy would afford JAL protection from creditors while it restructures.

In mid-November, Japan's transport minister Seiji Maehara stopped short of ruling out the possibility that JAL may go into bankruptcy.

"I have never said a court-led bankruptcy is impossible," he said then.