Shinsei Bank on Wednesday formally asked Deposit Insurance Corp. to take over 205 billion yen of its loans to embattled department store chain operator Sogo Co., bank officials said.
Whether the semigovernmental DIC will accept the request is seen as pivotal for the survival of the emporium operator. A final decision is expected by Friday.
In addition to general criticism over the use of public money to assist a private sector firm, regulators fear the repercussions should the retailer go under, making the decision a difficult one.