Three major creditor banks to Haseko Corp. are putting the final touches on a plan to waive some 120 billion yen in claims on the troubled condominium developer, according to industry sources.
The claims in question are part of overall claims by Daiwa Bank, Mitsui Trust & Banking Co. and Industrial Bank of Japan. The plan calls on each bank to forgo up to 40 billion yen, the sources said Tuesday. The three banks plan to ask six other creditor banks, including Sakura Bank and Bank of Tokyo-Mitsubishi, to join them in forgoing their claims on Haseko on the basis of their outstanding loans in the hope of reaching agreement by the middle of next month, the sources said.
The sources said total claims held by the nine banks subject to the waiver are expected to total some 350 billion yen. Haseko will map out a sweeping restructuring plan aimed at focusing on the condominium business by the end of this year on condition that the nine creditor banks waive some of their claims, the sources said.
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