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
TheStreet Open House

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 This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs