From Nihon Kogyo Shimbun, 26 July 2010
The Ministry of Economy, Trade and Industries (METI) is going to organize a joint business mission with delegates of major private sector players to Latin America in order to sell Japanese satellite products for earth observation as well as communications and broadcasting. The mission will visit Brazil, Argentina and Peru for two weeks starting August 23. Its private sector members include NEC, IHI, Mitsubishi Heavy Industries joined by Fujitsu, Hitachi, Mitsubishi Corporation and JAXA.
Brazil and Argentina have potential market needs of satellite use for forest watching, agricultural management and harvest forecasting. Brazil, in particular, is going to start full-fledged development of radar-equipped satellite for all weather observation where Japanese side can appeal with their expertise.
2010-07-17
JAL's Debt Ballons, Growing Distrust among Banks
The amount of excessive debt of Japan Airlines, under corporate rehabilitation process, has amounted to JPY1 trillion or US$1.11 billion level. The main reason of swallowing debt is attributed to book accounting to record the cost of disposal of older aircraft and other restructuring as ‘loss’. On the other hand, the former board members,those who were supposed to take responsibility of the collapse of the company, are found as serving as the board of JAL’s affiliated corporations; thus the distrust of bank syndicate has reached to its peak as they have been requested by JAL to abandon a part of their loans; it would be inevitable to foresee a hard time to reach their agreement within August.
A bank executive who was briefed by JAL on July 1 outburst-ed his emotion by saying ‘I cannot understand how come you added more amount to abandon by us.’
JAL’s excessive liabilities amounted to JPY 950 billion (approx USD 10.6 billion) on consolidated basis, higher than when the company filed for corporate rehabilitation process by JPY100 billion. Accordingly JAL wishes to ask the banks for debt waiver of extra 50 billion yen.
A reduction of personnel as a whole group, targeted 16,000 in total, calls for additional reserve of hundreds of billion yen for additional payment for their early retirement.
JAL is to receive public funding of 300-350 billion yen while the banking insertions are requested to abandon their liabilities. The airliner is obliged to announce publicly of their loss to keep transparency in return of receiving public fund, but the JAL has not disclosed the details yet.
Distrust feeling of the bank syndicate comes from not only increased amount of liabilities as requested. The former board of directors at JAL all quited as the company filed for bankruptcy but H. Nishimatsu, then-president, got a seat of president of JAL Foundation while some others got board members at JAL affiliated companies by June. An executive of the bank syndicate commented ‘A post of president is paid nothing but the post is honorable seat for those who completed all duties. Clearly the company lacks for sensitivity for how it would be perceived by the society.’
JAL’s liquidation process has protected general business liabilities such as aircraft leasing and fuel cost to ensure ‘continued operations’ and, in return, the rate of liability write off was set abnormally high.
In addition, JAL is requesting the banks of refinancing for replacement of its aircraft; currently the company has submitted a JPY 360 billion plan that was reacted by the banks thinking JAL is asking too much.
JAL’s performance shows a steadfast recovery as shown in May when its international service utilization rate was 70.8%, an improvement by 14 points than the same month of the previous year.
A bank executive who was briefed by JAL on July 1 outburst-ed his emotion by saying ‘I cannot understand how come you added more amount to abandon by us.’
JAL’s excessive liabilities amounted to JPY 950 billion (approx USD 10.6 billion) on consolidated basis, higher than when the company filed for corporate rehabilitation process by JPY100 billion. Accordingly JAL wishes to ask the banks for debt waiver of extra 50 billion yen.
A reduction of personnel as a whole group, targeted 16,000 in total, calls for additional reserve of hundreds of billion yen for additional payment for their early retirement.
JAL is to receive public funding of 300-350 billion yen while the banking insertions are requested to abandon their liabilities. The airliner is obliged to announce publicly of their loss to keep transparency in return of receiving public fund, but the JAL has not disclosed the details yet.
Distrust feeling of the bank syndicate comes from not only increased amount of liabilities as requested. The former board of directors at JAL all quited as the company filed for bankruptcy but H. Nishimatsu, then-president, got a seat of president of JAL Foundation while some others got board members at JAL affiliated companies by June. An executive of the bank syndicate commented ‘A post of president is paid nothing but the post is honorable seat for those who completed all duties. Clearly the company lacks for sensitivity for how it would be perceived by the society.’
JAL’s liquidation process has protected general business liabilities such as aircraft leasing and fuel cost to ensure ‘continued operations’ and, in return, the rate of liability write off was set abnormally high.
In addition, JAL is requesting the banks of refinancing for replacement of its aircraft; currently the company has submitted a JPY 360 billion plan that was reacted by the banks thinking JAL is asking too much.
JAL’s performance shows a steadfast recovery as shown in May when its international service utilization rate was 70.8%, an improvement by 14 points than the same month of the previous year.
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