CREDITORS SEEK SWIFT RESCUE PACKAGE FOR JAPAN LINE
A group of creditor banks hopes to work
out a rescue package for Japan Line Ltd <JLIT.T>, one of the
world's largest tanker operators, by the end of Japan's
business year on March 31, a spokesman for the Industrial Bank
of Japan Ltd <IBJT.T> (IBJ) said.
    Japan Line's cumulative debt was 68.98 billion yen at the
end of September, which exceeded shareholders' equities and
reserves totalling 63.40 billion.
    In December, Japan Line asked banks to shelve repayment of
about 124 billion yen in outstanding loans and about 153
billion in loans to its subsidiaries.
    Japan Line said then that the yen's steep rise and the
world shipping recession had hit the company hard.
    The Japanese daily Asahi Shimbun said today that IBJ and
three other banks plan to abandon a total of 16 billion yen in
loans to Japan Line and a group of creditor banks plans to buy
seven billion yen of new Japan Line shares.
    The spokesman for IBJ, Japan Line's largest creditor, said
the package may write off part of the outstanding loans and
will be worked out before long.
    Commenting on the article, he said the details of the
package have not yet been settled.
 REUTER
