Bankruptcy fears at freefalling Japan Airlines

Shares in Japan Airlines today collapsed 45 per cent amid fears that the beleaguered airline would file for bankruptcy.

Prime minister Yukio Hatoyama warned that shareholders should take responsibility for the carrier, which has been bailed out three times in nine years.

Mr Hatoyama's administration is expected to give its blessing to a restructuring which could leave shareholders with little or no equity. Benjamin Collett, head of equities at Louis Capital Markets in Hong Kong, said: "Debt holders will be sweating to see what happens next."

American Airlines and private-equity firm TPG are offering to inject $1.4 billion (£869 million) into the restructured firm.