TOKYO, Nov 20 (Reuters) - Japan Airlines Corp may have to pay about 100 billion yen ($1.1 billion) to settle its derivatives transactions, the Yomiuri newspaper reported on Friday.
JAL has used derivatives to hedge against fluctuations in jet fuel prices, foreign currencies and interest rates, but according to a rule set by the International Swaps and Derivatives Association (ISDA), JAL may have to settle those transactions once the carrier applies for a debt-repayment freeze, the paper said.
JAL, which is seeking its fourth bailout in less than a decade, has applied for a mediated debt restructuring scheme called "Alternative Dispute Resolution." The scheme would allow it to suspend payments to creditors.

(Reporting by Nobuhiro Kubo)

((nobuhiro.kubo@thomsonreuters.com; +81-3-6441-1821; Reuters Messaging: nobuhiro.kubo.reuters.com@reuters.net)) ($1=88.92 Yen) Keywords: JAL/DERIVATIVES (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)

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