Japan Airlines is set to file for bankruptcy on Tuesday, writing Japanese history as one of the nation's biggest corporate failures from which it could emerge a leaner, self-sustaining carrier.
The country's flagship carrier, called JAL for short, will likely convene a special board meeting in the afternoon before filing for protection from creditors under the Corporate Rehabilitation Law--Japan's version of Chapter 11, according to Kyodo News agency. The filing will be followed by a restructuring plan crafted by a government-backed corporate turnaround body.
The day's events culminate a process that began in October when JAL--saddled with debts of 1.5 trillion yen ($16.5 billion) --first turned to the Enterprise Turnaround Initiative Corp. for help. Under a prepackaged restructuring strategy, it will embark on a massive overhaul to shed the fat and inefficiency that hobbled Asia's biggest airline.
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