Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Shares  >  Tokyo  >  Japan Airlines Co Ltd    9201

SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 
The feature you requested does not exist. However, we suggest the following feature:

ANA gains creditor backing to lead bankrupt Skymark's turnaround plan

08/05/2015 | 01:51am US/Eastern
People are silhouetted past a logo of the Airbus Group during the Airbus annual news conference in Colomiers

ANA Holdings Inc (>> ANA Holdings Inc) won the backing of creditors to lead a turnaround of bankrupt Japanese discount carrier Skymark Airlines Inc [SKALF.PK], defeating a rival plan that proposed Delta Air Lines (>> Delta Air Lines, Inc.) as its sponsor.

ANA Holdings Inc (>> ANA Holdings Inc) won the backing of creditors to lead a turnaround of bankrupt Japanese discount carrier Skymark Airlines Inc [SKALF.PK], defeating a rival plan that proposed Delta Air Lines (>> Delta Air Lines, Inc.) as its sponsor.

The victory is set to give Japan's largest carrier access to Skymark's 36 landing and take-off slots at Tokyo's popular Haneda airport, helping it cement its growing domestic dominance over Japan Airlines (>> Japan Airlines Co Ltd).

For debt holders seeking to recoup their money, ANA is less risky than Delta, a creditor told Reuters ahead of the Wednesday vote.

ANA has a track record of operating airlines in Japan, has already discussed business plans with Skymark and other stakeholders and is close to Prime Minister Shinzo Abe's government, he added, declining to be identified due to the sensitivity of the matter.

More than 170 creditors voted in two rounds - the first where each vote was weighted to the amount each creditor is owed, while the second gave each creditor an equal vote. ANA, which has offered to buy a 16.5 percent stake in Skymark, won a majority of votes in each round, creditors said.

The result still needs to be approved by Japan's Civil Aviation Bureau and other stakeholders, including Skymark's financial backer, private equity firm Integral Corp.

Skymark's finances were stretched by an ambitious expansion programme, including plans to fly Airbus A380 superjumbos on overseas routes. Unable to keep up with payments for the A380s, Skymark opted for bankruptcy in January after Airbus scrapped the sale and demanded a $710 million cancellation fee.

Airbus, Skymark's second-biggest creditor, sided with ANA, sources with knowledge of the matter told Reuters earlier in the day.

Tokyo District Court has recognized liabilities of 152.2 billion yen (772 million pounds) while a further 157 billion yen remain under dispute.

For Delta, the decision is a lost opportunity to gain a base at Asia's second-busiest hub and a bigger presence in Japan where it does not have an alliance partner.

The Delta plan was put forward by leasing firm Intrepid Aviation, Skymark's biggest creditor, after it fell out with ANA over prospects for a leasing deal.

(Reporting by Maki Shiraki and Tim Kelly; Additional reporting by Chang-Ran Kim; Editing by Edwina Gibbs)

By Maki Shiraki and Tim Kelly

React to this article
Latest news on JAPAN AIRLINES CO LTD
01:51a ANA gains creditor backing to lead bankrupt Skymark's turnaround plan
07/30 JAPAN AIRLINES : JAL, ANA both report group net profit more than doubled in Apri..
07/30 JAPAN AIRLINES : JAL Group Announces Consolidated Financial Results
07/29 BOEING : U.S. gov't leaked crucial Boeing repair flaw that led to JAL jet crash
07/29 Main events scheduled for Thursday, July 30
07/27 JAPAN AIRLINES : Opens Newly-Renovated Sakura Lounge for International Flights a..
07/26 JAPAN AIRLINES : BRIEF: Tropical Storm Halola weakening in Pacific
07/25 JAPAN AIRLINES : UPDATE2: Strong typhoon approaches Japan's southwestern islands
07/25 JAPAN AIRLINES : Strong typhoon approaches Japan's southwestern islands
07/23 JAPAN AIRLINES : Opens Newly-Renovated Sakura Lounge for International Flights a..
Advertisement
Chart
Duration : Period :
Japan Airlines Co Ltd Technical Analysis Chart | 9201 | JP3705200008 | 4-Traders
Income Statement Evolution
More Financials