Asahi Mutual Life Insurance Co. said it would consider suing the now-defunct Yamaichi Securities Co. to demand full reimbursement of its subordinated loans.
President Yuzuru Fujita told a Friday news conference that when his firm agreed to extend the loans in March 1997, Yamaichi did not disclose that it had a huge amount of latent losses.
These subordinated loans should be treated as regular loans and be repaid in full, Fujita said, adding that the matter is being discussed between the two parties. If no agreement can be reached, Asahi Mutual would consider bringing the issue to court, he said.