Japan’s Skymark Airlines borrows 1b yen

Skymark Airlines has borrowed 1b yen (US$8.7m) as a subordinated equity loan from Shoko Chukin Bank, the coronavirus-stricken carrier announced on December 24. Effective from December 24, the borrowing period is 10 years. It is the first time the low-cost carrier has borrowed funds from Tokyo-based Shoko Chukin, a financial institution specialising in providing banking services to small and medium-sized enterprises. Skymark said it was taking the loan "for the purpose of strengthening its financial position." Skymark Airlines revealed in July that it would raise 2b yen (US$17.4m) in August through a shareholder allocation capital increase and the same amount again in subordinated loans - debt that ranks after other debts if a company falls into bankruptcy or liquidation.<br/>