Takefuji Corp., whose bankruptcy exit plan was approved by a Japanese court in October, said it may delay a split of the company into two entities until the end of next month.
The timing will be decided by Eiichi Obata, the attorney overseeing the turnaround process, the company said in a statement on its website today. Japan’s Nikkei newspaper had reported that the company might split as early as the beginning of next month.
South Korean consumer loan company A&P Financial Co. is in the process of buying Takefuji. A&P Financial was selected as a preferred bidder for the Japanese company on April 11, among rival bids from J Trust Co., a Japanese financial-services firm, TPG Capital and two others.
The plan for Takefuji, crafted by lawyers including Obata, entails splitting the company into two entities, one responsible for repaying creditors and another as a viable consumer lending business. Takefuji’s debt has more than tripled to about 1.5 trillion yen ($19.2 billion) since it filed for bankruptcy in September 2010.