Mycal rehab hits negotiation snag

OSAKA — Failed supermarket operator Mycal Corp. will delay submitting its rehabilitation plan to the Tokyo District Court for more than six months after the Dec. 31 deadline, a major retailer helping rebuild Mycal said Tuesday.

“I don’t know if it will take a year or a half year (to submit the plan),” Motoya Okada, president of Aeon Co., told a news conference in Tenri, Nara Prefecture, indicating a possible delay of more than a year.

Mycal will apply to the court in the near future for an extension of the deadline to submit the plan, he said.

Prolonged negotiations with financial institutions are behind the planned postponement, Okada said. The negotiations involve the handling of land and buildings put up as collateral for loans.

The postponement also reflects time-consuming coordination with securities companies over how to deal with corporate bonds issued for individuals in 2000, the year before Mycal failed.

“It would be wrong to say negotiations (with creditors) are becoming tangled,” Okada said. “But it has taken time because we are listening to their arguments.

“We decided to postpone (the submission) because it will cause problems for the court.”

Mycal filed for court protection from creditors on Sept. 14, 2001, with group liabilities of 1.74 trillion yen.