Japanese Transport Minister Seiji Maehara revealed on Friday that the government will decide on a state-backed turnout plan for Japan Airlines Corp on Jan. 19. The decision is expected to pave the way for Asia's biggest carrier to restructure under bankruptcy protection.

The state sponsored funds program is expected to include a bankruptcy filing as it is saddled with a $16 billion debt.

The airline, which reported a first-half loss of 131 billion yen, received three state bailouts in nine years before Hatoyama ended half a century of almost continuous rule by the Liberal Democratic Party last year.

JAL sought financial help from Enterprise Turnaround after reporting three losses in four years and having its own turnaround plan rejected by the government.

The yield on JAL's 10 billion yen ($110 million) in 2.94 percent notes due in 2013 reached 69.7 percent today, after tripling last week, according to Japan Securities Dealers Association prices on Bloomberg. The notes yielded about 9.5 percent a year ago.

In accordance to the turnaround plan, the airlines will receive 600 billion yen in bridge loans from government-backed Enterprise Turnaround and state-owned Development Bank of Japan.