JAL shares tumble as bankruptcy worries mount

 @ibtimes
on December 28 2009 9:16 PM

Shares of Japan Airlines Corp <9205.T> fell 9.4 percent on Tuesday on growing concerns the struggling carrier could be put through bankruptcy court as part of a state bailout.

Sources have told Reuters that a state-backed turnaround fund now weighing whether to bail out JAL is considering using a bankruptcy procedure similar to Chapter 11 in the United States as part of its revival plan.

Shares of JAL were down 9 yen at 87 yen by the midday break in Tokyo. The benchmark Nikkei average <.N225> was down 0.1 percent.

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