<p>JAL, Asia’s largest airline by revenue, applied in October for help from the Enterprise Turnaround Initiative Corp of Japan (ETIC), a body of turnaround specialists established to bail out companies with state-guaranteed funding. <br /><br />The ETIC has discussed with JAL’s creditors the possibility of using a Chapter 11-style bankruptcy procedure if it decides to support the carrier, but has not ruled out a restructuring outside of bankruptcy court, the two sources said. The sources spoke on condition of anonymity given the sensitivity of the matter. The ETIC and JAL declined to comment.<br /><br />The ETIC also met with JAL over the weekend and explained that bankruptcy was being considered as an option, sources said. The ETIC is expected to make a final decision on whether to support JAL with loans and investments next month. It is saddled with some $15 billion in debt. If it fails it would be one of Japan’s largest bankruptcies in recent years.</p>
<p>JAL, Asia’s largest airline by revenue, applied in October for help from the Enterprise Turnaround Initiative Corp of Japan (ETIC), a body of turnaround specialists established to bail out companies with state-guaranteed funding. <br /><br />The ETIC has discussed with JAL’s creditors the possibility of using a Chapter 11-style bankruptcy procedure if it decides to support the carrier, but has not ruled out a restructuring outside of bankruptcy court, the two sources said. The sources spoke on condition of anonymity given the sensitivity of the matter. The ETIC and JAL declined to comment.<br /><br />The ETIC also met with JAL over the weekend and explained that bankruptcy was being considered as an option, sources said. The ETIC is expected to make a final decision on whether to support JAL with loans and investments next month. It is saddled with some $15 billion in debt. If it fails it would be one of Japan’s largest bankruptcies in recent years.</p>