Major construction firm Kajima Corp. said Tuesday it has no plans to take a stake in its debt-ridden rival Kumagai Gumi but held out the possibility of providing management personnel and forming a business alliance.
"There has been a report on support by Kajima for a bailout of Kumagai Gumi, but our company has no plans to invest in it," Kajima said in a brief statement.
The firm did say it would deal with a dispatch of personnel and a business alliance with Kumagai Gumi -- if requested -- on a case-by-case basis and with priority on its own interests.
Kajima issued the statement after the Asahi Shimbun newspaper reported in its Tuesday evening edition that Kajima has agreed on a bailout of the ailing construction company.
Kumagai Gumi is currently in talks with major creditors, notably Sumitomo Bank, over a restructuring plan that centers on its request for 450 billion yen in debt forgiveness.
The plan also involves halving its capital by about 40 billion yen, slashing about 2,000 jobs and asking Kajima to purchase part of a new share issue.
Kumagai Gumi had consolidated interest-bearing debts of 1.057 trillion yen at the end of March this year, the biggest in the industry.