Bankruptcy Likely For Japan Airlines Before Tie-Up

Law360, New York (January 11, 2010, 5:31 PM EST) -- Japan Airlines Corp. may have to complete a Chapter 11-type restructuring before it can enter into a tie-up with American Airlines Inc. or Delta Air Lines Inc., both of which have been trying for months to negotiate a deal with the carrier.

According to news reports, top officials in Tokyo are inclined to break a 10-year cycle of government bailouts that would send the airline, Japan's biggest in terms of earnings, into bankruptcy.

The planned three-year turnaround could see thousands of jobs cut to reduce costs,...
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