Takefuji Corp.’s rehabilitation plan was approved by the Tokyo District Court, paving the way for the bankrupt Japanese consumer lender’s proposed sale to South Korean firm A&P Financial Co.
The court endorsed the proposal submitted to the court on July 15, Eiichi Obata, an attorney overseeing the revival, said in a statement on Takefuji’s website today. The company plans to sell assets and secure funds in a bid to repay its debt, it said.
The plan, crafted by lawyers including Obata, entails a split of Takefuji into two: one entity responsible for repaying creditors and another to embark on business as a consumer lender. Takefuji’s debt has more than tripled to about 1.5 trillion yen ($19.2 billion) since it filed for bankruptcy in September 2010.
A&P Financial has said it wants to expand business in Asia including China by tapping Takefuji’s experience in the consumer-finance industry. It also plans to adopt the Takefuji brand, once known in Japan as “Yen Shop.”
The collapse of the lender made it the biggest casualty of a government clampdown that forced Takefuji and rivals Acom Co., Promise Co. and Aiful Corp. to lower interest rates and refund overpaid interest.