Daio may reinstate dad of disgraced boss

JIJI

Daio Paper Corp. may reinstate as an adviser Takao Ikawa, the father of former Chairman Mototaka Ikawa who faces criminal charges over massive loans he took out from group firms but couldn’t pay back, sources said Tuesday.

Daio Paper hopes to mend its ties with the group’s founding family by reinstating the father, who has also served as Daio Paper president and chairman, the sources added.

The firm is in talks on a capital alliance with Hokuetsu Kishu Paper Co., which is expected to become the top shareholder by paying around ¥10 billion for all Daio Paper shares held by the Ikawa family.

The founding family will use the proceeds to repay ¥5.2 billion in remaining loans the son owes to group firms.