Skymark Wins Integral’s Support After Bankruptcy FilingKiyotaka Matsuda
Skymark Airlines Inc., the Japanese carrier that’s filed for bankruptcy, won a pledge from private-equity fund Integral Corp. for 9 billion yen ($77 million) to support the company through its restructuring process.
Integral will provide Skymark with financing to keep stable cash flow during the process, the airline said in a statement to the Tokyo Stock Exchange today. The 9 billion yen will be converted into equity in the company, Nobuo Sayama, a partner at Integral, told reporters in Tokyo.
Skymark, which filed for bankruptcy last week, will also seek sponsors other than Integral, the airline said today, as the country’s third-largest carrier tries to survive amid competition with Japan Airlines Co. and ANA Holdings Inc. The budget airline told its creditors yesterday that it expects to prepare a business recovery plan by the end of May.
The airline plans to put the proposal to a vote by creditors before submitting it for court approval, the Tokyo-based company said in a note to participants at a creditors’ meeting in Tokyo yesterday. Skymark intends to start implementing the proposal by the end of July, according to the note. Yuri Nagano, a spokeswoman at Skymark, declined to comment on the meeting.
The budget airline had to seek bankruptcy protection after a decision to purchase six Airbus Group NV A380 superjumbos flopped last year. Skymark owes creditors led by the aircraft-leasing arm of General Electric Co. about $520 million, according to documents obtained by Bloomberg.
Sayama said Integral will seek additional partners for Skymark, both inside and outside the airline industry, but will support the airline even if none are found.