UPDATE 1-JAL seeks about 522 bln yen debt waiver - Nikkei

July 28 (Reuters) - Debt-ridden Japan Airlines Corp (JALFQ.PK) and the state-backed turnaround body overseeing its restructuring have sought lender approval to waive off more than 521.6 billion yen ($6 billion) that JAL owes, the Nikkei business daily reported.

Of the 521.6 billion yen for which approval is being sought, the company has 383 billion yen in loans and the rest in corporate bond and derivatives, the paper said.

As part of the restructuring plan, the Enterprise Turnaround Initiative Corp of Japan (ETIC) has asked the Development Bank of Japan to write off 142.1 billion yen of JAL debt on its books, Nikkei reported.

JAL and the turnaround body have put together a rehabilitation plan that includes cutting operating costs by 440 billion yen over five years as well as merging of its three core units.

Mizuho Corporate Bank and Bank of Tokyo-Mitsubishi UFJ have been asked to waive off 56.6 billion yen and 51.4 billion yen in loans respectively, while Sumitomo Mitsui Banking Corp will forego 17.6 billion yen if the lenders approve the rehabilitation plan, the paper said.

Subject to lender approval, the Japanese airline is expected to submit the rehabilitation plan to Tokyo District Court by the end of August, the Nikkei report said.

The paper, however, said that lenders have expressed reluctance over issuing fresh loans for the troubled carrier, of which 319.2 billion yen is needed as per the rehabilitation plan. ($1=86.96 Yen) (Reporting by Himank Sharma in Bangalore; Editing by Gopakumar Warrier)