JAL in negative net worth over $11 bln

TOKYO: Struggling Japan Airlines Corp's negative net worth is around USD 11.013 billion (1 trillion yen), swelling from USD 9.551 billion revealed in January, informed sources said today.

JAL will consider seeking an additional USD 1.101 billion in support from its main banks and the Enterprise Turnaround Initiative Corporation of Japan, which is overseeing the former flag carrier's rehabilitation, they said.

The airline expects it could include the additional support in its rehabilitation program to be submitted to the Tokyo District Court at the end of August. However, the lenders are expected to raise objections to the plan, the sources said.

The enlargement of the negative net worth has been caused by expansion of expenditures for restructuring, including large-scale early retirements, according to the sources.

President Masaru Onishi said earlier this month he expects JAL to move into the black on a consolidated operating basis in the current fiscal year ending next March, a year earlier than initially planned.