Japan Airlines set to file bankruptcy

JAL is likely to file for bankruptcy as early as next week as part of a broader restructuring aimed at reducing debts.

Japan Airlines set to file bankruptcy

Kazuo Inamori, the founder of electronics maker Kyocera Corp, agreed on Wednesday to become the new chief executive of Japan Airlines, as the carrier's shares plunged ahead of its expected bankruptcy.

JAL is likely to file for bankruptcy as early as next week as part of a broader restructuring aimed at reducing debts, slashing about 13,000 jobs and cutting up two dozen unprofitable routes, sources have told Reuters.

With $16 billion in debts, JAL's bankruptcy would be the sixth largest in Japan's history.

Inamori, the 77-year-old honorary chairman of Kyocera and an ordained Buddhist priest, will replace Haruka Nishimatsu, who has indicated he would resign as part of the restructuring overseen by a government-backed fund.

Founded in 1959 as a ceramics company, Kyocera has grown into one of Japan's most profitable technology firms. Its products include semiconductor components, mobile phones and solar cells.


Reuters

Last Mod: 19 Ocak 2010, 12:47
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