U.S. investment fund Ripplewood Holdings LLC said Wednesday it has completed its acquisition of the failed Seagaia resort complex in Miyazaki Prefecture by gaining all of its 7.32 billion yen in shares newly issued after a 100 percent capital cut.
Ripplewood purchased 39,200 new shares in Phoenix Resort Co., Seagaia's operator, for 3.92 billion yen, boosting its capital to 1.96 billion yen, a spokesman for Ripplewood said.
The U.S. investment fund also acquired all shares issued by two affiliates of Phoenix Resort for 3.4 billion yen in total, he said.
Ripplewood has established a fund to raise money from investors to complete the acquisition deal.
Phoenix Resort and its two affiliates filed for court protection from creditors in February with total debts of 326.1 billion yen in Japan's largest failure of a semipublic entity.
The Miyazaki Prefectural Government had a 25 percent stake in Phoenix Resort.
The resort complex consists of a 43-story hotel, golf courses, a convention hall and a zoo. It was the venue of last year's Group of Eight foreign ministers' meeting.