TOKYO — Japan Airlines filed for one of the country’s largest bankruptcies ever Tuesday, entering a restructuring that will shrink Asia’s top carrier and its presence around the world.
Staggering under a $25.6 billion debt mountain, the carrier applied for protection from creditors under the Corporate Rehabilitation Law — Japan’s version of Chapter 11 — with Tokyo District Court.
Japan’s flagship airline will slash nearly 16,000 jobs, reduce pensions for retired staff, cut routes and shift to more fuel-efficient aircraft as part of its restructuring.
About $10 billion of government cash will keep JAL’s planes in the air during the reorganization. Lenders will forgive $8 billion in debt, and JAL shares will be removed from the Tokyo Stock Exchange on Feb. 20, wiping out investors.
