NCB Mortgage Co., an affiliate of the nationalized Nippon Credit Bank, applied to the Tokyo District Court for voluntary bankruptcy on Tuesday, company officials said.
The court accepted the application, the officials said. NCB Mortgage has liabilities of 174 billion yen.
Founded in 1985, the company has engaged in sales of real estate-backed loan credits and mortgages in securitized forms. It has fallen into financial trouble since the bursting of the bubble economy of the late 1980s.
NCB Mortgage decided on voluntary bankruptcy as it can no longer expect financial support from NCB, which was placed under government control on Sunday. The company owes 164.8 billion yen to NCB.
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