Takefuji Corp. (8564), the bankrupt Japanese consumer lender, extended a deadline for bids from potential investors for a second time as the nation recovers from its worst earthquake on record, said two officials who have knowledge of the deal.
Takefuji postponed the final submission date for offers to March 31, the people said, declining to be identified because the sale process is confidential. The company had previously asked suitors to submit offers by March 22, Eiichi Obata, a court-appointed lawyer overseeing the lender’s rehabilitation, said on March 4.
Takefuji officials didn’t immediately return a call seeking comment.
Deutsche Bank Sells $100 Million in Lehman Claims
Deutsche Bank AG (DBK) sold $100 million in claims on bankrupt Lehman Brothers Holdings Inc. to Centerbridge Partners LP units.
The claims on Lehman and its commercial paper unit had the same numbers as the $325 million claims sold earlier by Swedbank AB (SWEDA) to Frankfurt-based Deutsche Bank, according to records in U.S. Bankruptcy Court in Manhattan. Earlier this week, Goldman Sachs Group Inc. (GS) disclosed it had bought $50 million of the same claims. Och-Ziff Capital Management Group LLC bought $20 million.
Creditors and investors are buying Lehman claims in advance of a wrangle over a $61 billion payment plan, which they may vote on by Oct. 14, Lehman said yesterday in a filing. Holders of claims on Lehman’s commercial paper and derivatives units are in line to claim extra money from the parent company, which guaranteed the units’ debt.
Opposing them, Paulson & Co. and other bondholders managed to improve their promised payout after filing a liquidation proposal that competed with Lehman’s.
Trading in IOUs issued by Lehman totaled $28.8 billion last year, four times the total for 2009, according to data from SecondMarket Holdings Inc., which tracks illiquid markets.
The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
OEM to Be Wound Up by Liquidators After CVA Deemed ‘Not Viable’
Joint liquidators were appointed to wind up OEM Plc after a Company Voluntary Arrangement was deemed not to be a viable option for the London-based company, the liquidators from UHY Hacker Young LLP said in a statement.
Metrovacesa to Delay Debt Repayments for 5 Years, Expansion Says
Metrovacesa SA (MVC), a property holding company, reached agreement with 90 percent of its lenders to delay debt repayments for five years, Expansion reported, citing unidentified people at Metrovacesa.
Metrovacesa will pay the interest on its 5.76 billion euros ($8.1 billion) worth of loans but not the principle, the newspaper said.
The company will also present a scheme of arrangement, a court-approved plan between a company and its lenders, in the U.K. to allow it to reach an accord with its lenders to restructure debt, the newspaper said.
Metrovacesa is presenting the scheme of arrangement under U.K. law because it states that companies have to reach an agreement with at least 75 percent of creditors, whereas in Spain creditor agreement must be 100 percent, the newspaper said.
The company will also stage a 1.2 billion euros capital increase, the newspaper added.
S&T Founder Streimelweger Sells 28% to Creditors, Format Reports
Thomas Streimelweger, the founder of S&T System Integration & Technology Distribution AG (SNT), agreed to hand over his 28 percent stake in the Austrian IT company to three creditor banks, Format magazine reported, without saying where it got the information.
Streimelweger owed 16 million euros to Hypo Alpe-Adria-Bank International AG, Oesterreichische Volksbanken AG (VBPS)’s Investkredit and Hypo Niederoesterreich, the Vienna-based magazine said.
The banks will create a hive-off vehicle for the stake and combine it with the 29 percent of S&T that formerly were in the portfolio of insolvent AvW, Format said, citing the Austrian Takeover Commission. The banks will then seek a buyer for the combined stake of 57 percent, according to the report. KDDI Corp. (9433) of Japan and MDS of Lebanon may be interested in S&T, Format said.
Creditors Should Take Losses in Bank Crises, FSA’s Turner Says
Regulators should be able to “impose losses on all debt providers” in a crisis, Turner said in a speech in London on March 16. He also said the most systemically important lenders should face tougher capital requirements than smaller banks.
“It is essential that private fund providers to banks can absorb losses without this triggering” fire sales of assets or a “reduced credit supply,” Turner said.
The European Union is working on rules aimed at averting a repeat of the financial crisis that followed the 2008 failure of Lehman Brothers Holdings Inc. (LEHMQ) and resulted in European governments setting aside more than $5 trillion to support banks. The plans may require some creditors to accept losses in the event of a crisis.
Turner said that while the latest standards from the Basel Committee on Banking Supervision are a major step forward, “in an ideal world” equity capital requirements would be as high as 15 percent to 20 percent of risk-weighted assets.
“Regulators are the inheritors of a half century long policy error, in which we have allowed private sector banks to pursue their private interest in maximizing leverage levels, at times influenced by a deep intellectual confusion between private costs and social optimality,” Turner said.
The Basel Committee last year recommended that banks hold capital of about 7 percent of their risk-weighted assets.
Turner also said that stress tests on lenders should err on the side of “excessive caution.”
To contact the reporter on this story: Karin Matussek in Berlin at firstname.lastname@example.org
To contact the editor responsible for this story: Anthony Aarons at aaarons@Bloomberg.net.