Japan's Skymark Airlines struggles to pick partners

Bankrupt Skymark Airlines is having trouble getting its rehabilitation off the ground as negotiations with potential business sponsors and support companies drag on.

Selecting supporters, the first step toward the airline's turnaround, was supposed to be completed by the end of February, but the process is likely to last until the end of March.

The maze of speculation and conflicting interests among sponsor candidates and creditors is making it difficult to map out a revival plan.

"We have yet to sort out terms for our judgment" for the selection of support companies, a Skymark official said. "We would like to make a decision by the end of this month."

Upon a court decision on Feb. 4 to allow Skymark to launch its reconstruction under the fast-track civil rehabilitation act, the third-largest Japanese carrier picked Tokyo-based investment fund Integral as its sponsor. The airline then began the process of selecting a co-sponsor, as well as companies that will support its operations.

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