This Case is about REORGANIZATION
PUBLICATION DATE: November 14, 2013 PRODUCT #: 214055-HCB-ENG
The recently selected chairman of the investment committee of the Enterprise Turnaround Initiative Corporation, Hideo Seto, must decide whether to press on Japan’s biggest airline, JAL group, into insolvency or to behave as a patron in an out-of-court restructuring. The insolvency of JAL would be the biggest ever for an industrial company in Japan’s history. The case initiate the mechanics of insolvency, the tradeoff between out-of-court restructuring and insolvency, and the expenses of financial distress.
At the degree of public policy, the case also functions as a helpful backdrop to talk about the function of insolvency in the efficient operation of the market, as well as the associated comparison between Japan and the U.S. in terms of both the bankruptcy code and the ethnic attitudes toward corporate restructuring. This case can fit into an opening class in the tradeoff between the costs and benefits of debt as well as a module on capital structure or in an innovative corporate restructuring class in a module on the result of different cultural and legal surroundings on bankruptcy proceeding.