An insolvent property developer with close ties to the recently reborn Long-Term Credit Bank of Japan on Monday filed for a court-mandated bailout under new legislation aimed at speeding up the corporate rehabilitation process, a credit research agency said.

Saddled with debts of 560 billion yen, Nihon Building Project Co. is the most heavily indebted company to seek rehabilitation under the new law, which took effect April 1, according to Teikoku Databank.

The debt tally dwarfs the corresponding sum of 290 billion yen of nonbank moneylender Nichiboshin Ltd., which asked for court protection under the same law in April.

Nihon Building Project was founded in 1969 as an entity in charge of devising office building construction projects.

The developer later expanded into other fields, including golf course construction and hotel management.

The company counted on massive credits from the former LTCB and Nippon Credit Bank, both of which were placed under government administration in late 1998 due to massive loan losses.

In its business heyday, the developer posted 53.3 billion yen in operating revenues in the business year through July 31, 1991, which corresponds to the closing period of the asset-inflated bubble years.

Nihon Building Project subsequently sank into serious fundraising difficulties after the two giant long-term credit banks were put under state control.