JAL shares nosedive 81 per cent as bankruptcy nears

Shares in troubled Japan Airlines Corp. have nosedived 81 per cent to 7 yen as the money-losing airline is expected to file for bankruptcy protection as early as next week.

Investors dumped JAL shares Wednesday, with prices closed in the morning session at 7 yen, down 30 yen,  the maximum decline allowed during a day, or a staggering 81 per cent from Tuesday’s finish of 37 yen.

Japan’s top business daily Nikkei and the major daily Asahi said Asia’s biggest airline was expected to file for bankruptcy protection as early as January 19 with its shares to be delisted.

Kyodo News agency reported that the state-backed corporate turnaround body responsible for JAL’s restructuring is considering setting up a budget airline.

 

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