“Shareholders at the extra ordinary general meeting of the company held on September 24, 2009 have passed the requisite resolution regarding the issuance of additional capital up to $ 400 million,” Jet said in a filing to the Bombay Stock Exchange.
The airline had earlier said it would raise the amount by private placement of shares with qualified institutional buyers or by Global Depository Receipts (GDRs), American Depository Receipts (ADRs) and Foreign Currency Convertible Bonds (FCCBs).
Japan Airlines is also struggling for public money to be raised as the president of Japan Airlines said Thursday the money-losing carrier is applying for public funds to help turn around the company after it was pummeled by the downturn in global air travel, but it quickly received a reluctant response from the transport minister.
JAL President Haruka Nishimatsu said he told Land and Transport Minister Seiji Maehara that the airline is seeking emergency government aid under an industrial revitalization law that is intended to help struggling companies.
“I have made the request from JAL” seeking approval for an injection of public funds, Nishimatsu told reporters after the talks. He refused to reveal how much money the airline wants. “Considering the economic environment, we believe that we could eventually reduce our dependency on the government if we could use the revitalization scheme.”
If approved, JAL would be the second company to receive emergency aid under a new government program designed to help companies ride out the global slump. The government approved aid for chip maker Elpida Memory Inc. in June.
Approval is not guaranteed because some government officials believe JAL’s slump reflects structural problems in the company, not just the global economic downturn, Japan’s largest newspaper, Yomiuri, said.
Maehara called the airline’s restructuring plan insufficient.
“I must say it’s not enough. I can’t immediately say yes to the request,” he said.
“We’d like to see JAL work to the bone and produce a thorough reconstruction plan that can get a passing mark from financial institutions,” Maehara said.
JAL has reportedly been in talks with several major airlines including American Airlines Inc. and Delta Air Lines Inc. for possible financial and business support. Earlier this month, JAL said it would cut 6,800 jobs by March 2012.
It will also consider a breakup of the company as a solution to its financial problems, The Wall Street Journal reported Thursday, citing an unidentified source.
Maehara also met with leaders of the government-owned Development Bank of Japan, as well as Japan’s top three commercial banks — Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group and Mizuho Financial Group — to discuss the possibility of funding the airline. JAL in June reached a 100 billion yen ($ 1.1 billion) loan deal with the Development Bank of Japan and the three commercial banks.
Nishimatsu provided details of the company’s restructuring measures, including scrapping of unprofitable routes and capital tie-ups with foreign airlines, during his talks with Maehara. The president said JAL aimed to conclude talks with foreign carriers by mid-October, but did not identify them by name.
JAL, a former national carrier that was privatized in 1987, incurred its biggest-ever quarterly net loss of 99 billion yen ($ 1 billion) in the three months to June.
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