Skymark Creditors Reject Delta, Opt for Funding Plan Backed by ANA

TOKYO—Creditors of Japan's financially troubled Skymark Airlines Inc. on Wednesday chose ANA Holdings Inc. to support the carrier's rehabilitation, blocking an alternative plan submitted by a creditor that sought help from Delta Air Lines Inc.

At Wednesday's meeting, creditors were asked to choose between Skymark's plan that involves the parent of All Nippon Airways Co. and an alternative proposal by U.S. aircraft-leasing company Intrepid Aviation and Delta.

Skymark, Japan's No. 3 airline by passengers flown, has been searching for a path to rehabilitation since filing for bankruptcy protection in January.

Under the approved plan, sponsors will jointly inject ¥ 18 billion ($145 million) into Skymark. Investment fund Integral Corp. will take an equity stake of 50.1% in the airlines, while ANA will obtain a 16.5% stake. A fund jointly formed by the government-affiliated Development Bank of Japan and Sumitomo Mitsui Banking Corp. will take the remaining 33.4% stake.

Intrepid, Skymark's biggest creditor, initially supported ANA's participation in Skymark's restructuring. Intrepid and ANA discussed a deal under which ANA would pick up the lease on seven aircraft that Intrepid had been leasing to Skymark. After that deal fell through, Intrepid decided to look for other options.

Skymark's slots at Tokyo's Haneda airport are attractive for air carriers. Skymark controls 36 arrival and departure slots for domestic flights at Haneda—about 8% of the airport's domestic slots.

Delta was seeking to take this opportunity to win a long-sought domestic partner in Japan. ANA is already allied with United Continental Holdings Inc., while Japan Airlines has teamed up with American Airlines Group Inc.

Write to Megumi Fujikawa at [e-mail]

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