TOKYO: Japan's biggest airline, ANA Holdings Inc, said it was considering injecting capital in budget airline Skymark Airlines Inc as it applied to take part in the company's bankruptcy rehabilitation plan.
Skymark last month filed for protection from creditors with total liabilities of 71.09 billion yen ($597 million). It agreed on a 9 billion-yen sponsorship deal to keep the business going with Tokyo-based fund Integral and is now seeking co-sponsors to help it turn the business around.
The deadline to submit expressions of interest was Monday for airlines and last Thursday for non-aviation companies.
People with knowledge of the matter told Reuters last week that ANA and others including brokerage Daiwa Securities Group , Shinsei Bank, and financial services provider Orix Corp had expressed interest in taking part.
Interested parties will have until May 29 to work out a rescue plan before submitting it to the Tokyo District Court and seeking approval from Skymark's creditors.
Skymark is expected to start implementing the plan from around the end of July.
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