Takefuji’s Revival Plan, Sale to Korea’s A&P Approved by Court
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. (8515) to lower interest rates and refund overpaid interest.
To contact the editor responsible for this story: Chitra Somayaji at firstname.lastname@example.org.