Marking a fundamental shift to this nation’s corporate culture, Japan Airlines Corp. filed the country’s largest ever bankruptcy petition by a nonfinancial company, kicking off a painful, three-year restructuring that will have lasting effects on hundreds of thousands of people.
Undone by government ties that propped up excessive spending, the former flag carrier now will significantly shrink its operations. A third of JAL’s work force, 15,700 employees, will be axed. Thousands of retail shareholders will be wiped out. And bondholders will likely take a fat reduction to their holdings.
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(Source: The Wall Street Journal Online)