DTN News - FINANCIAL CRISIS: Bankrupt Detroit Cannot Wait For Federal Cavalry-City Manager

DTN News - FINANCIAL CRISIS: Bankrupt Detroit Cannot Wait For Federal Cavalry-City Manager

Source: DTN News - - This article compiled by Roger Smith from reliable sources Reuters

(NSI News Source Info) TORONTO, Canada - July 21, 2013: Detroit must dig itself out of the hole it created and cannot wait to see if the federal government will come to its rescue, the city's emergency manager said on Sunday.

Kevyn Orr, charged with guiding the collapsed Motor City out of the largest municipal bankruptcy in U.S. history, said any outside assistance would be "great" but he is not banking on it.

"Hope is not a strategy from my perspective. I can't plan on the basis of what may or may not happen or what help may or may not come," Orr said on "Fox News Sunday."

"We are not expecting the cavalry to come charging in," he said. "We have to fix it because we dug the hole."

Detroit filed for bankruptcy on Thursday, setting the stage for a costly court battle with creditors and opening a new chapter in the long struggle to revive the cradle of America's auto industry.

If approved by a federal judge, the bankruptcy would force Detroit's thousands of creditors into negotiations with Orr to resolve an estimated $18.5 billion in debt.

Detroit Mayor Dave Bing said he was talking to officials in Washington about what they could do to help.

"I'm not sure exactly what to ask for. I mean, money is going (to) help, no doubt about that, but how much?" Bing said on ABC's "This Week."

The mayor has had no executive authority since Orr's appointment as emergency manager in March.

Michigan Governor Rick Snyder told CBS' "Face the Nation" the city's problems had been 60 years in the making and he saw no prospect of a federal or state bailout.

Detroit has been hit hard by the move away from industrial manufacturing in America since the 1950s, its problems compounded by chronic mismanagement and a dwindling population. Retirees now far outnumber active workers among the city's 700,000 residents, and unfunded pension liabilities are a key source of its problems.

After the economic collapse of 2008, Washington injected billions of dollars into automakers General Motors Co and Chrysler as the first step of a quick bankruptcy process. But the federal government made no promises this time.

Vice President Joe Biden said on Friday said it was unclear whether Washington could help.

Steven Rattner, who led the auto industry restructuring in 2009, said it would be a mistake for Michigan and the federal government not to provide funds for the city.

"America is just as much about aiding those less fortunate as it is about personal responsibility. Government does this in so many ways; why shouldn't it help Detroit rebuild itself?" Rattner wrote in an opinion piece Friday in The New York Times.

The bankruptcy led investors to dump the city's municipal bonds on Friday but Orr deflected criticism that it will be hard for investors to lend the city money again.

"The reality is, they are going to look at the credit rating of a rehabilitated city. And if that city is capable, they're going to make rational decisions because they are financial institutions," Orr said on the Fox program.

"After some time, after this little kerfuffle, we'll be back in business."

*Link for This article compiled by Roger Smith from reliable sources Reuters
*Speaking Image - Creation of DTN News ~ Defense Technology News 
*Photograph: IPF (International Pool of Friends) + DTN News / otherwise source stated
*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
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DTN News - BRITISH DEFENSE NEWS: The SDSR Is A Slash-And-Burn Campaign Plan - And It's Time The Government Admitted It

DTN News - BRITISH DEFENSE NEWS: The SDSR Is A Slash-And-Burn Campaign Plan - And It's Time The Government Admitted It
Source: DTN News - - This article compiled by Roger Smith from reliable sources By William Forbes - Daily Mail UK
(NSI News Source Info) TORONTO, Canada - April 10, 2012: Four days ago I wrote, in respect of the Falkland Islands but with relevance to all British interests in the wider sense:

'The most effective deterrent of all, the true guardian of the Islands‘ security, is British clarity of vision, rational national defence policies, and consistently unambiguous and fudge-free ministerial communication. Those are issues this blog will examine during the next few months.'

Our theme for this, Rational Defence First, is linked to Effects-Based Financing (EBF) and to unwavering insistence on Integrity as the principal virtue of our national leaders. That integrity must include the willingness to admit incapacity, to acknowledge failure, and to surrender office to others better qualified in knowledge, experience and skill.

So where, amid what defence analysts recognise as a truly appalling political, economic and military situation, should we begin? If we are to concentrate on what has happened and will happen under the present coalition government (treating the dreadful years of Mr Brown’s stewardship, about which we can do little now, as merely the platform for future disasters we can still avert), then the obvious place to begin is this government’s Strategic Defence and Security Review, the SDSR (or, as it is known among defence analysts, the Suicidal Disarmament and Surrender Retreat).      

Fair-minded readers may ask whether the selection of such a defenceless target can be justifed? Perhaps it seems like bullying, but effectively the target has been chosen for us by the government’s own insistence that the SDSR will not be amended (even while ministers surreptitiously seek to do just that as the true horror of their position, and of the nation’s military weakness, sinks into the government’s addled corporate brain). 

Despite its condemnation by a host of defence experts, highly qualified by experience, especially by members of the United Kingdom National Defence Association (UKNDA), whose criticisms are countered solely by personal smears (but while the MoD employs a battalion of PR spin doctors they may as well be used, no?), and despite the mounting evidence of the SDSR’s irrelevance, the government refuses to budge from its obtuse stance.

Again it may be asked if such criticism is not rather too harsh, for were the authors of the SDSR themselves not highly qualified experts who knew exactly what they were doing? Well, yes, they did know, but they were not composing the rational strategic review expected from their deliberations and they did not produce one. They were responding to what the Treasury dictated, not to strategic requirements, and the result was a slash-and-burn campaign plan that is incrementally destroying the UK’s ability to protect its sovereign interests.

As independent analysts everywhere accused the government of fantasy, a serious charge when the nation’s defences are in question, again we must ask if the charge is too harsh. To this the analysts reply that the hub of the SDSR’s thinking is the acquisition at some time in the future of two aircraft carriers equipped, at some further time in the future, with squadrons of the F-35B or F-35C Joint Strike Fighters. Future issues of this blog will deal extensively with the practicality of this plan, especially in respect of its cost (which is already, we are told, out of control, and far beyond our ability to pay), but for today I shall restrict the criticisms to those in a formal paper I have had on file for a year.

The basis of the paper’s argument was ‘the conflict between the SDSR’s representation of the F-35 JSF as “the world’s most advanced multi-role combat jet” and (when paired with the Typhoon) “two of the world’s most capable combat aircraft”, a claim for which the MoD can produce no valid evidence ...’ and the paper charged: ‘The SDSR claim was untrue and destroyed its credibility.’ 

The paragraph of the SDSR relevant to this stated:

“Our fast jet fleet will be made up of two modern and highly capable multi-role combat aircraft, the Typhoon and Joint Strike Fighter. This combination will provide the flexibility and strike power to deal with a variety of new and existing threats, while also radically improving cost-effectiveness and efficiency.” 

The Typhoon was described two decades ago by a very senior RAF officer as “the aircraft that will bankrupt the Air Force,” and it has been reported that when quoted to an American audience it drew a snort of derision: “We have an airplane that will bankrupt the whole ******* country.”  The full JSF programme began life modestly, so when it was predicted that its cost would rise to near one trillion dollars there were questions to answer. First there was denial, and then admission that this might possibly be correct, then that it was but it might be higher, then that it would be $1.3 trillion, then $1.45 trillion, and now there are rumours it will be $1.5 trillion (or $1,500 billion, or $1,500,000,000,000 if that is easier for the MoD, which has problems with figures, to comprehend). 

The paper continues with a reference to a recent letter from the MoD pleading that 'the JSF programme is in the early development stage' and thus implicitly accepting the validity of the original criticism of the SDSR’s promotion of the JSF as a superior aircraft in its category, and also of the MoD’s subsequent claims that it is most 'cost-effective'. 

Such claims may easily mislead the public. No aircraft in the inchoate development stage of the JSF – nine years behind schedule and with three million lines of code yet to be written (another six years at the current rate of progress) – can be portrayed as one of the world’s best, nor may it be validly described as 'cost-effective' when neither its costs nor its effectiveness are known or are capable of calculation.

We shall have much to discuss on this fantasy in future issues of the blog, principally on the grounds that, first, the carriers, if they are ever ready to put to sea ten years or more from now, will be too vulnerable to risk in war, and second, that the JSF design is not what the UK wants or can afford.

So the SDSR should be scrapped immediately, plans for any more cuts should be stopped immediately, and a new review commissioned for production within a realistic timescale. The SDSR, as the government must understand, has no credibility and has been shown, in its distortion of the truth about the immense financial commitments the MoD is making on our behalf, that it lacks the integrity essential for government communications in a democracy.

Having started with the SDSR, several of the coming posts must be used to provide the information the MoD has forgotten to give the public. None of it is secret. All will be taken from material in the public domain, much of it in America. Owing to the crucial role of the carriers-JSF programme in the SDSR's plans, most of it will be concentrated on these two immensely expensive items - whose real costs, the MoD has admitted, have been grossly underestimated by the department's ‘conspiracy of optimism’ and hidden by processes described in Parliament as ‘dysfunctional and incompetent’.

More...

• *£10billion spent on refuelling planes which don't work on RAF jets
• *Bill for Britain's new stealth fighter jets soars up to £15bn
• *Scandal of the 800 hero Army dogs put down after military service... because they were considered too fierce to become pets

*Link for This article compiled by Roger Smith from reliable sources By William Forbes - Daily Mail UK
*Speaking Image - Creation of DTN News ~ Defense Technology News 
*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
©COPYRIGHT (C) DTN NEWS DEFENSE-TECHNOLOGY NEWS

DTN News: JAL Says Still Neutral On Delta Or American Tie-Up ~ Financial News

DTN News: JAL Says Still Neutral On Delta Or American Tie-Up ~ Financial News * JAL wants to make decision on Delta/American soon-president

* New management's first briefing since bankruptcy filing

*Source: DTN News / Reuters (NSI News Source Info) TOKYO, Japan - February 1, 2010: The new president of Japan Airlines Corp (9205.T) said the bankrupt carrier has not yet decided whether to stick with partner American Airlines (AMR.N) or defect to Delta Air Lines (DAL.N) and its SkyTeam group. "We are still neutral," Masaru Onishi, also the carrier's new chief operating officer, told a news conference on Monday, a little less than two weeks after it filed for bankruptcy. Onishi is part of a new management team led by chief executive Kazuo Inamori, the 77-year-old founder of electronics maker Kyocera Corp (6971.T). One of the new management's first major decisions will be whether to stay with Oneworld alliance partner American Airlines (AMR.N) or switch to rival Delta. Both U.S. carriers have been wooing JAL aggressively with offers of financial aid. JAL, Asia's largest carrier by revenues, filed for bankruptcy protection last month with about $25 billion in debt, and vowed to slash about a third of its work force and cut unprofitable routes as part of a state-supported restructuring plan. Some Japanese media had previously reported that JAL had already made a decision to end its alliance with American and join hands with Delta.

(Reporting by Nobuhiro Kubo; Editing by Michael Watson)

DTN News: Financial News TODAY January 19, 2010 ~ Japan Airlines Files For $25 Billion Bankruptcy

DTN News: Financial News TODAY January 19, 2010 ~ Japan Airlines Files For $25 Billion Bankruptcy *Source: DTN News / Reuters By Mayumi Negishi and Mariko Katsumura (NSI News Source Info) TOKYO, Japan - January 19, 2010: Japan Airlines Corp (JAL) (Tokyo:9205.T - News) filed for bankruptcy protection on Tuesday owing more than $25 billion, and vowed to slash 15,700 jobs and unprofitable routes as it tries to survive volatile fuel costs and fickle flyers.Japan Airlines President Haruka Nishimatsu, right, accompanied by Hiroshige Nishizawa, president of Enterprise Turnaround Initiative Corp. , speaks during a press conference in Tokyo, Japan, Tuesday, Jan. 19, 2010 shortly after Japan's flagship carrier filed for bankruptcy in one of the nation's largest corporate failures. Nishimatsu resigned, bowing deeply as he apologized for the company's troubles. A Japan Airlines Corp. (JAL)'s flag flies at the company's headquarters on January 19, 2010 in Tokyo, Japan. Asia's largest carrier JAL filed for bankruptcy protection and is put under the control of the state-backed Enterprise Turnaround Initiative Corporation of Japan (ETIC) for management reconstruction. JAL, Asia's largest airline by revenues and an ambassador for Japan across the world, will remain in the skies thanks to nearly 1 trillion yen ($11 billion) in state-backed support and faces a sweeping restructuring under a new board and management. Shareholders will be wiped out and creditors will forgive 730 billion yen in debt, with banks waiving 350 billion yen in loans, as part of the deal with the fund, the Enterprise Turnaround Initiative Corp of Japan (ETIC). "JAL lacked strong governance and was unable to keep up with changing times," ETIC Executive Director Akitoshi Nakamura told a packed news conference. "In a sense JAL encapsulates what is a typical problem and hurdle for Japan as a whole." Bankruptcy will only be the beginning for an airline that once symbolized "Japan Inc's" international aspirations and now faces depleted capital, rising fuel prices and shrinking passenger numbers -- all on top of hefty restructuring costs. JAL, which has now been bailed out by the Japanese government four times in the past 10 years, will replace many of its older and less fuel-efficient planes. It also faces tough decisions about foreign capital and alliances. "It's unclear how JAL will be able to grow as a business," said Yasuhiro Matsumoto, credit analyst at Shinsei Securities. "I can't see how JAL is going to build its network domestically and internationally." JAL and two core units filed for court protection from creditors in a procedure similar to Chapter 11 in the United States. Combined, the three firms had 2.3 trillion yen in debt as of the end of September, making it Japan's fourth-largest ever bankruptcy and its biggest by a non-financial firm. Shares of JAL, which have fallen more than 90 percent since the start of the month, closed flat at 5 yen after trading down 2 yen to 3 yen. They will be delisted on February 20. With a market value of about $150 million, JAL is now smaller than minor carriers Croatia Airlines (HRAR.ZA) and Jazeera Airways (Kuwait:JAZK.KW - News) and is worth less than one Boeing 747. "I thought that there was no way that JAL would fail," said Akiko Saito, a 63-year-old retiree returning from Sydney to Tokyo's Haneda Airport. "Even when the value of my JAL shares fell from 800,000 yen to below 120,000 yen, I was convinced that it would recover, and I held on to my stock." JAL bonds maturing in 2013 were priced at the equivalent of just 27.8 cents on the dollar, versus around 70 cents last month, but traders said there was little trading appetite for the bonds on Tuesday. The dollar fell to a session low against the yen on the news. The bankruptcy move could make rival All Nippon Airways Co (Tokyo:9202.T - News) Japan's new flagship carrier, but a debt-free and leaner JAL could eventually become a formidable threat for ANA, according to some analysts. Shares in ANA fell 4.2 percent after rallying to a six-month high last week. DEBT-LADEN The "tough love" for JAL by Prime Minister Yukio Hatoyama's four-month-old Democratic Party-led government signals a shift from previous governments under the long-dominant Liberal Democratic Party, which had authored the previous JAL bailouts. "What this shows is that the nation won't just take total care of a company. They've now said they'll let badly run companies fail," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments. Following similar bankruptcies by overseas airlines such as Delta Air Lines (NYSE:DAL - News) and United Airlines (NasdaqGS:UAUA - News), JAL plans to slash its 51,862 workforce to 36,201 and to cut 14 international routes and 17 domestic routes in three years. The ETIC will support the carrier with about 300 billion yen in capital. The ETIC and the Development Bank of Japan will together provide a 600 billion yen credit line. Fuel-hedging contracts may also be affected by a bankruptcy filing. JAL uses mostly Brent forward contracts and about 40 billion yen is estimated to be exposed in the event of an automatic termination, a source familiar with the matter said. JAL will also need to decide about competing aid offers from Oneworld alliance partner American Airlines (NYSE:AMR - News) and rival Delta, which wants to woo JAL to its SkyTeam group. That decision will be left to the new management, to be led by Kazuo Inamori, the 77-year-old founder of electronics maker Kyocera Corp (Tokyo:6971.T - News), who was tapped last week to become JAL's new chief executive officer to oversee its restructuring. JAL's restructuring plan also calls for increasing fuel-efficiency in its fleet, replacing all 37 of its B747-400 jets and 16 MD90s, both supplied by Boeing (NYSE:BA - News), with 33 small jets and 17 regional ones. ($1=90.43 Yen) (Additional reporting by Nathan Layne, Nobuhiro Kubo, Chris Meyers and Linda Sieg; Writing by Lincoln Feast; Editing by Jean Yoon, Tim Hepher and Elaine Hardcastle)

DTN News: Financial News TODAY January 18, 2010 ~ Japan Airlines Shares Drop 45% As Bankruptcy Fears Grow

DTN News: Financial News TODAY January 18, 2010 ~ Japan Airlines Shares Drop 45% As Bankruptcy Fears Grow *ANALYSIS: By Roland Buerk, BBC News, Tokyo Japan's new government has been agonising for months over how to keep JAL in the air and who should pay the price for its massive debts - the taxpayer, shareholders, staff and pensioners or the banks. A decision is emerging - all of them. Banks that hold JAL's debt are reported to have tentatively agreed to the plan - the alternative could be a total collapse which would imperil their chances of seeing any of the money again. Circling the mess are the global airline alliances, Oneworld and SkyTeam, which are still interested in JAL because of the access it offers to Asia. But reports in Tokyo say both may be rejected for now as their involvement would complicate the process.

*Source: DTN News / BBC (NSI News Source Info) TOKYO, Japan - January 18, 2010: Shares in Japan Airlines (JAL) fell by 45% to a new all-time low on Tuesday as fears grow that the carrier is heading for bankruptcy. The fall came despite an improved offer of investment from American Airlines, up from $1bn to $1.3bn. The US carrier is keen to link into JAL's lucrative Asian routes. Meanwhile, JAL's current and former employees have agreed to cuts in the company's pension scheme payouts. The fund has a $3.6bn (£2.2bn) deficit. Those cuts are crucial to the company gaining any government support. Battle for skies American Airlines' improved offer of help also comes with strings attached. It wants JAL to stay with the Oneworld alliance that American is also a member of, along with British Airways and Qantas. JAL has another, rival, offer of support from the US. Delta Airlines is offering $500m and wants JAL to join its SkyTeam network. Thomas W Horton, chief financial officer of American's parent, AMR Corp, said: "While JAL and the Japanese government might decide to address capital requirements internally - and we certainly would understand and respect that - our offer of capital would be available if this was deemed an appropriate resource to aid in the restructuring of JAL." Staff cuts Japan Airlines applied for a government bail-out in October last year through the state-backed Enterprise Turnaround Initiative Corporation of Japan (ETIC) - a body able to draw on taxpayers' money to prop up the business while it restructures. A decision on that is due before the end of January, but the ETIC requires cost-cutting concessions, which not only include the restructuring of pension arrangements but also potentially severe job cuts of up to a third of the company's 49,000-strong workforce. It will then inject fresh capital into JAL, provided the airline files for bankruptcy and creditors agree to waive around 350bn yen ($3.8bn, £2.36bn) in debts.

DTN News: Financial News TODAY January 15, 2010 ~ JAL Draws On Emergency Funds As Bankruptcy Looms

DTN News: Financial News TODAY January 15, 2010 ~ JAL Draws On Emergency Funds As Bankruptcy Looms *Source: DTN News / Reuters By Mariko Katsumura and Nathan Layne (NSI News Source Info) TOKYO, Japan - January 15, 2010: Japan Airlines Corp (Tokyo:9205.T - News) moved a step closer to bankruptcy on Friday by drawing down $1.6 billion in emergency funding and with the prime minister set to decide when the carrier will start a state-led restructuring. JAL, Asia's largest airline by revenues but with a market value that has collapsed to below that of budget carrier Skymark Airlines (Tokyo:9204.T - News), will file for bankruptcy protection as early as Tuesday, sources have told Reuters, as part of a restructuring being crafted by a state-backed turnaround fund. Transport Minister Seiji Maehara said he would meet Prime Minister Yukio Hatoyama on Friday to set "X day," a term widely used by media and bankers working on JAL's restructuring to refer to when it will file for bankruptcy. "We are doing everything possible to reduce anxiety and ensure that X-day will not cause any confusion," Maehara told reporters. JAL, mired in losses and weighed down by about $16 billion in debt, applied in October to the Enterprise Turnaround Initiative Corp of Japan (ETIC), a fund that can draw on government-backed funding to bail out ailing firms. The ETIC is expected to make an official decision next week to support the carrier with public money after it files for what could rank as Japan's sixth-largest bankruptcy. JAL announced on Friday it had procured 145 billion yen ($1.6 billion) in funds remaining from a 200 billion yen credit line provided by the state-owned Development Bank of Japan, indicating it was building up emergency cash. "We are preparing so we can make the necessary outlays when needed," JAL spokesman Satoru Tanaka said. Japan Airlines International, which handles domestic and overseas flights, and JAL Capital, which raises operational funds, are among the units that will also file for bankruptcy and be part of the bailout, a source with knowledge of the matter said. JAL declined to comment. "We expect at least the group's three core companies -- JAL, JAL International and JAL Capital -- to file for bankruptcy protection under the government-led rehabilitation scheme," said Minoru Nakano, an official at bankruptcy research firm Teikoku Databank. "It's also possible that some other restructuring measures will be announced for other smaller units at the same time." Shares of JAL closed down 1 yen at 7 yen, giving it a market value of about $210 million. The stock has lost about $1.8 billion this week amid growing expectations it will file for bankruptcy and be delisted from the Tokyo exchange. The ETIC plans to put about 300 billion yen in fresh capital into JAL after it files for bankruptcy. Its banks, which include the country's top private lenders, have been asked forgive about 350 billion yen in debts, sources have said. JAL's restructuring will include cutting some 15,000 jobs, or roughly a third of its work force, eliminating two dozen more routes and halving the number of subsidiaries through streamlining and asset sales, a source said. The overhaul will be led by Kazuo Inamori, the 77-year old founder of electronics maker Kyocera Corp (Tokyo:6971.T - News), who agreed on Wednesday to replace current chief executive Haruka Nishimatsu. Hilton Worldwide said on Friday that it would take over the management of a JAL hotel in located in Fukuoka in southwestern Japan. Hilton said it would spend $20 million to refurbish the hotel, one of Japan's largest with more than 1,000 rooms. (Additional reporting by Yuko Inoue; Editing by Michael Watson)

DTN News: Financial News TODAY January 13, 2010 ~ JAL Heads For Bankruptcy With $16 Billion In Debt

DTN News: Financial News TODAY January 13, 2010 ~ JAL Heads For Bankruptcy With $16 Billion In Debt *Source: DTN News / Int'l Media (NSI News Source Info) TOKYO, Japan - January 13, 2010: Japan Airlines (9205.T) will likely file for bankruptcy protection next week, sources with knowledge of the matter said, in what would be one of the largest corporate failures in Japanese history. Here are some facts about the likely procedure and restructuring, and a list of Japan's biggest bankruptcies. * A state-backed fund, the Enterprise Turnaround Initiative Corp of Japan (ETIC), is eyeing Jan. 19 to 22 for Japan Airlines to file for bankruptcy. The ETIC would then officially announce plans to support the carrier as its sponsor in the proceedings, including plans for a capital injection of about 300 billion yen. * JAL is expected to file for protection from creditors under the Corporate Rehabilitation Law, one of two major legal proceedings that allow for a company to continue its operations and pursue a revival, similar to Chapter 11 in the United States. In this bankruptcy procedure, management is normally sacked and a court-appointed trustee is given the power to administer the company's assets and its business. This is one of the key differences compared with the Civil Rehabilitation Law, which allows current management to retain authority. * JAL's filing will be "pre-packaged", as the debt waiver and sponsor investor will be decided beforehand, allowing for a smoother rehabilitation process. The ETIC is asking banks to forgive about 350 billion yen in debt. JAL will likely be the first company in Japan to secure a debt waiver before the bankruptcy filing is made. * Bankruptcy is a well-worn route for overseas airlines. Delta Air Lines (DAL.N), United Airlines (UAUA.O) and US Airways (LCC.N) are among the U.S. carriers to have been through and emerged from bankruptcy in recent years. JAL received emergency loans from the state-owned Development Bank of Japan in 2001 in the wake of the Sept. 11 terrorist attacks in the United States, in 2003 after the spread of SARS, and again last year. But it has never filed for bankruptcy. * JAL was saddled with about 1.5 trillion yen ($16.3 billion) in total liabilities as of the end of September. At that level of debt, its bankruptcy would be the sixth largest in Japan's history. Here is a list of Japan's five largest bankruptcies: COMPANY WHEN DEBT 1. Kyoei Life Insurance OCT 2000 4,529,693 2. Lehman Brothers Japan SEPT 2008 3,431,400 3. Chiyoda Mutual Life Insurance OCT 2000 2,936,600 4. Japan Leasing SEPT 1998 2,180,300 5. Mycal SEPT 2001 1,600,000 NOTE: *Value is in millions of yen.

SOURCE: Tokyo Shoko Research (Compiled by Junko Fujita)

DTN News: Financial News TODAY January 11, 2010 ~ Japan Fund Leaning Towards JAL Delisting ~ Reports/R.S.

DTN News: Financial News TODAY January 11, 2010 ~ Japan Fund Leaning Towards JAL Delisting ~ Reports/R.S. *Source: DTN News / Reuters

(NSI News Source Info) TOKYO, Japan - January 11, 2010: A state-backed fund crafting a restructuring plan for Japan Airlines (9205.T) is leaning toward a delisting of the carrier after it files for bankruptcy, a source with knowledge of the matter said. The fund, called the Enterprise Turnaround Initiative Corp of Japan (ETIC), has been considering a plan that would allow Japan Airlines to keep its listing on the Tokyo Stock Exchange, sources told Reuters last week. The fund is still debating the issue but a delisting is currently its main scenario as it seeks to hold shareholders accountable for the carrier's downturn along with creditors being asked to forgive debt, the source said. The source was not authorized to speak publicly about the issue. The ETIC declined to comment. The ETIC has proposed to JAL creditors that the carrier's restructuring include it filing for bankruptcy protection under the Corporate Rehabilitation Law, a process similar to Chapter 11 in the United States, sources have told Reuters. Normally that would lead to a complete reduction of capital, wiping out the value of a company's shares. But the ETIC has been considering a plan for a small portion of its capital -- at maximum a few percent -- to be retained. That would allow JAL to remain listed even after a bankruptcy filing, which sources say could come as early as January 19. "A delisting is right now the main scenario," the source said. "But both options are still being considered and a final decision has not been made." JAL's creditors, which include Mitsubishi UFJ Financial Group (8306.T), Mizuho Financial Group (MUFG) (8411.T) and Sumitomo Mitsui Financial Group (8316.T), are keen for JAL to keep its listing so as not to entirely wipe out their shareholdings. The core banking units of MUFG and Mizuho are among JAL's top stockholders in terms of both common and preferred shares. NEW MANAGEMENT For its part, the ETIC is concerned over the potential business impact of a delisting. A good portion of JAL's stock is in the hands of individuals, which hold the shares for fare discounts and other incentives. The prospect of JAL keeping its listing is one of the factors supporting its stock. The carrier still has a market value of about $2 billion even as the likelihood of a bankruptcy grows. The Tokyo Stock Exchange revised its rules in 2003 to allow companies that had filed for bankruptcy protection to retain their listing if they met certain criteria, one of which is that they do not implement a complete reduction of capital. But until now no company that has applied for protection under the Corporate Rehabilitation Law has kept their stock listing. JAL would be the first case. Even if JAL were able to keep its listing, the carrier's existing shareholders will likely see the value of their stock diluted significantly if it wins the support of the ETIC. The ETIC plans to inject about 300 billion yen in fresh capital into JAL, provided it goes through with the bankruptcy filing and banks agree to waive 350 billion yen in debt, sources have said. Even as it appears headed for bankruptcy, Delta Air Lines (DAL.N) and American Airlines (AMR.N) have been courting JAL with rival offers of financial aid and close ties on overseas routes. The ETIC will not invite either U.S. carrier to invest in JAL at this stage as it believes a decision on its overseas partner should be left to new management, a source told Reuters. Bringing in either Delta or American as shareholders could also complicate the ETIC's efforts to exit its investment, which it must do in 3 years. ($1=92.25 Yen)

(Editing by Muralikumar Anantharaman)

DTN News: Financial News TODAY January 09, 2010 ~ JAL Could File For Bankruptcy On Jan. 19 According Official Media

DTN News: Financial News TODAY January 09, 2010 ~ JAL Could File For Bankruptcy On Jan. 19 According Official Media * Reports: JAL could file for bankruptcy on Jan. 19, cut 13,000 jobs

*Source: DTN News / Int'l Media (NSI News Source Info) TOKYO, Japan - January 09, 2010: Struggling Japan Airlines Corp. could file for bankruptcy as early as Jan. 19 under a government-backed restructuring plan that includes 13,000 job cuts, reports said Saturday. Saddled with massive losses, Asia's biggest airline is seeking a state bailout. On Friday, the government approved a court-led bankruptcy option proposed by a state-backed corporate turnaround body, the business newspaper Nikkei said, citing no sources. With government approval, the airline, known as JAL, could file for bankruptcy with the Tokyo District Court as early as Jan. 19, it said. The national newspaper Asahi also said JAL's bankruptcy filing could come Jan. 19. A JAL spokeswoman said the company was still in discussions about restructuring plans, but regardless of the decision, JAL's flight operations will continue. Officials at the transport ministry could not be reached for comment. The Nikkei said JAL will cut 13,000 jobs -- nearly 30 percent of its work force -- over the next three years and withdraw from nearly 50 routes at home and abroad. In a bid to ease JAL's debt burden, the corporate turnaround body will ask banks to forgive 350 billion yen ($3.8 billion) of debt owed by the troubled airline, it said. Amid bankruptcy fears, shares in JAL continued to drop, with their closing price tumbling nearly 12 percent Friday to 67 yen. At the beginning of 2009, JAL's share price stood at 213 yen. JAL is also weighing cash offers from Delta Air Lines Inc., the world's biggest airline operator, and its rival American Airlines. The U.S. carriers are fighting over JAL because of its strong routes in the fast-growing Asian market, especially China. Delta and its SkyTeam partners have offered $1 billion to JAL, while American Airlines has countered with a $1.4 billion offer. JAL and American Airlines are in the oneworld alliance, which also includes British Airways.

DTN News: Airlines News TODAY December 28, 2009 ~ Problematic JAL Faces Bankruptcy Option According To Report

DTN News: Airlines News TODAY December 28, 2009 ~ Problematic JAL Faces Bankruptcy Option According To Report *Source: DTN News / Int'l Media (NSI News Source Info) TOKYO, Japan - December 28, 2009: A state-backed turnaround body overseeing Japan Airlines' restructuring is considering bankruptcy as one option for the cash-strapped carrier, reports said Monday.A Japan Airlines aircraft is parked at Haneda airport in Tokyo December 28, 2009. Bankruptcy has been proposed by a state-backed fund as an option in the restructuring of Japan Airlines, two sources familiar with the matter said. Proposals submitted to JAL's creditors by the Enterprise Turnaround Initiative Corp. include filing for protection from creditors to give the airline time to put its finances in order, the Nikkei business daily said. But debt-ridden JAL, seeking its fourth government bailout since 2001, aims to avoid bankruptcy proceedings. "We are pursuing the possibility of restructuring without bankruptcy," JAL spokesman Kojiro Waki told AFP. An official at the turnaround body declined to comment on the reports. The airline has said it plans thousands of job cuts and a drastic reduction in routes as part of its efforts to return to profitability. JAL has been offered financial assistance by both American Airlines and Delta Air Lines, who are competing to take a minority stake in the Japanese carrier, eyeing its coveted Asian landing slots. Japan's government has ruled out allowing JAL to collapse, but has left the door open to possible bankruptcy proceedings to allow the group to restructure more easily.