Bankruptcy of Japan Airlines

Kyodo News - Story:

"Japan Airlines Corp. filed for bankruptcy protection on Tuesday in the biggest nonfinancial corporate failure in Japan's postwar history, paving the way for a massive government effort to keep the flagship carrier flying with the use of about 900 billion yen in public funds....''

Notice again the "too big to fail" principle:

"If JAL was not the biggest airline company, it would have been liquidated,'' Maehara said, referring to the size of JAL's debt.

and finally a good example of the various chapters of bankruptcy. Chapter 15 is one which we don't generally cover in class, but probably should.

"The company also filed for Chapter 15 proceedings in the United States, which is used to deal with bankruptcy cases in foreign countries, while the government also used its diplomatic channels and exposure to the foreign media to ensure smooth overseas operations."