The lately appointed chairman of the investment committee of the Enterprise Turnaround Initiative Corporation, Hideo Seto, must choose whether to push the biggest airline in Japan, JAL group, into bankruptcy or to act as a patron in an out-of-court restructuring. The insolvency of JAL would be the largest ever for an industrial company in Japan's history.
The case commence the mechanics of bankruptcy, the tradeoff between out-of-court restructuring and insolvency, and the expenses of financial distress. At the level of public plan, the case also provide a useful backdrop to go over the role of liquidation in the well-organized function of the economy, and the associated comparison between Japan and the U.S. in terms of both the bankruptcy code and the ethnic attitudes on the road to corporate restructuring.
This case can fit into an opening class in the tradeoff between benefits and the costs of debt and a module on capital structure or in an advanced corporate restructuring course in a module on the result of different cultural and legal surroundings on bankruptcy proceedings.
Restructuring JAL case study solution
PUBLICATION DATE: November 14, 2013 PRODUCT #: 214055-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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