JAL seeks extra ¥50b yen capital

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Japan Airlines (JAL) is seeking additional capital of ¥50 billion ($615.8 million) on top of the ¥350 billion pay-out it will receive from a government-backed fund to help the airline restructure financially.

The carrier is in negotiations with Japan's Enterprise Turnaround Initiative Corporation (ETIC) and various banks to secure the extra funds, says a JAL spokeswoman.

"We are still in talks so it is too early to say where the funds will come from," she adds.

JAL filed for bankruptcy protection in January after incurring huge losses, and is due to receive the pay-out from the ETIC in December as part of a financial turnaround plan. Creditors have also agreed to forgive ¥521.5 billion of the airline's debt.

JAL submitted its rehabilitation plan to the Tokyo District Court in August, and hopes to receive the court's approval in end-November before implementing the plan in December.