Takefuji Plan, Saab Investors, Luminar Rescue Bids: Bankruptcy
Takefuji Corp. (8564)’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 on July 15, Eiichi Obata, an attorney overseeing the turnaround, 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.
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. (8515) to lower interest rates and refund overpaid interest.
Saab Auto’s Chinese Investors Set to Invest 610 Million Euros
Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile, the Chinese companies that plan to buy Saab Automobile, are set to invest 610 million euros ($854 million) in the Swedish carmaker starting next year.
Pang Da and Youngman will also provide an immediate 50 million-euro bridge loan to help the debt-laden company survive during its court-administered protection against creditors, Guy Lofalk, the attorney overseeing Saab’s reorganization, said in a document posted on the Vaenersborg District Court’s website.
“Assuming that Saab can continue its reorganization, the management will focus on restoring trust with suppliers, dealers and employees based on a solid turnaround plan and competitive products,” Lofalk wrote in a court petition to continue the reorganization.
A court in southwestern Sweden is holding a hearing today to decide whether Saab’s protection against creditors should proceed. Trollhaettan-based Saab has produced few cars since it first halted production in March because of a lack of money.
For the reorganization to continue, the court must see that Saab has cash to pay for immediate expenses as well as a viable long-term business plan.
Youngman and Pang Da agreed on Oct. 28 to buy Saab for 100 million euros from Zeewolde, Netherlands-based Swedish Automobile NV.
Iceland Passes Final Hurdle in $11.4 Billion Depositor Payout
Iceland will start paying out as much as $11.4 billion in foreign depositor claims after the country’s top court upheld an emergency law that leaves bank bondholders in the lurch and protects ordinary account holders.
The decision by Iceland’s Supreme Court to rule in favor of a crisis bill enacted three years ago “marks the endpoint” to a dispute with the U.K. and the Netherlands triggered by the island’s 2008 financial collapse, Economy Minister Arni Pall Arnason said. The ruling will help repair relations with the two countries, whose depositors risked losing their savings when Iceland’s second-biggest bank collapsed, he said.
“It’s clear from these rulings that all depositors, regardless of nationality, residency, nature or amount of their deposit, will get their money back in full,” Arnason said in an interview in Reykjavik. Repayment may start within weeks, he said.
Iceland’s banks defaulted on $85 billion at the end of 2008, as the government ring-fenced lenders’ domestic operations in an effort to protect the $12 billion economy from total collapse. The local assets of Landsbanki Islands hf, Kaupthing Bank hf and Glitnir Bank hf were taken over by the state, which has since created new banks from the lenders. Bondholders, including Royal Bank of Scotland Plc, BNP Paribas SA and Deutsche Bank AG, are still trying to recoup their funds.
Luminar May Be Rescued by Private Equity Firms, Sunday Times Say
Luminar Group Holdings Plc (LMR) may be rescued by private equity investors that had attempted to buy the U.K. nightclub operator before it was placed into administration, the Sunday Times reported, without saying where it got the information.
R Capital and Sun European Partners are in discussions with administrators Ernst & Young LLP, the newspaper said.
An Ernst & Young spokesman declined to comment when contacted by telephone.
National Car Parks in Reorganization Talks, Sunday Times Says
National Car Parks Ltd. is in talks with banks and landlords about reorganizing the privately held company’s finances after a sharp decline in business, the Sunday Times reported.
Britain’s largest car park firm has hired Deloitte LLP to leads discussions on the restructuring, the newspaper said, without citing anyone.
Wescoal Seeks to Block Unit’s Liquidation, Business Day Reports
Wescoal Holdings Ltd. (WSL), a South African coal producer, will ask for an urgent court order this week against an application to liquidate a unit of the company, Business Day reported, citing Chief Executive Officer Andre Boje.
BSM Mining, a closely held company, filed papers with the North Gauteng High Court on Oct. 27 asking for Wescoal Mining to be placed under final or provisional winding-up, the Johannesburg-based paper reported.
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