• Kyodo


The Miyazaki Prefectural Government does not plan to give Ripplewood Holdings LLC direct financial aid to purchase the facilities of the failed Seagaia resort, Gov. Suketaka Matsukata said Thursday.

“It is not among the conditions for rehabilitation for the prefecture to give specific aid,” Matsukata said at the prefectural assembly.

There had been speculation that the prefectural government might help Ripplewood Holdings, a U.S. investment fund, buy the indoor pool and other facilities within the resort.

Ripplewood agreed last month to take over Phoenix Resort, the semi-public entity that sought court protection in February after Seagaia’s failed operations.

Phoenix and its two affiliates went bankrupt with debts totaling 326.1 billion yen, the largest failure of a semi-public entity in Japan. Ripplewood and a court-appointed trustee for Phoenix Resort are working together on a court-mandated rehabilitation plan for the resort complex.

Matsukata also said he feels no regret over the loss of 75 million yen that the prefecture invested in Phoenix Resort.

“There were benefits from the investment. Seagaia contributed greatly in providing employment in the prefecture,” he said.

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