This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

JAL Shares Dive To Record Low On Bankruptcy Fears

TOKYO (AP) ¿ Shares of struggling Japan Airlines Corp. nosedived to a record low Wednesday on growing fears the money-losing carrier could be put through bankruptcy court as part of restructuring.

Asia's biggest airline, known as JAL, closed down 24 percent at 67 yen on the last trading day for 2009 on the Tokyo Stock Exchange. Earlier in the day, JAL plunged 32 percent to 60 yen.

Wednesday's finish marked a staggering fall from JAL's closing price of 213 yen at the beginning of this year.

"Investors were very nervous about the fate of JAL. With recent reports saying the airline could face bankruptcy, investors were panicking their JAL stock ownership could be worthless," said Masatoshi Sato, market analyst at Mizuho Investors Securities Co. Ltd.

JAL is undergoing major restructuring to get itself back on solid footing.

Kyodo News agency said a government-backed corporate turnaround body, which is responsible for restructuring JAL, has proposed to the airline's creditor banks that the struggling carrier be placed in court-backed bankruptcy proceedings.

But the Yomiuri daily, Japan's top-selling newspaper, said Wednesday the banks rejected the liquidation proposal because of fears of widening losses and concern that bankruptcy could disrupt the airline's operations.

Kyodo said the corporate turnaround body is expected to finalize its plan on reviving JAL by late January.

A spokesman for JAL could not be reached for comment.

Delta Air Lines Inc., the world's biggest airline operator, and its rival American Airlines are vying for a stake in JAL in a bid to expand their Asian networks.

JAL and American Airlines are in the oneworld alliance. Delta and its SkyTeam partners have offered $1 billion to lure JAL from American.

Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
DAL $46.23 1.09%
AAPL $126.91 -0.54%
FB $83.62 0.64%
GOOG $533.97 -0.26%
TSLA $209.41 2.02%

Markets

DOW 17,949.59 -85.34 -0.47%
S&P 500 2,097.29 -3.11 -0.15%
NASDAQ 5,014.1020 +19.50 0.39%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs