Bankrupt second-tier general contractor Aoki Corp. said Wednesday it has persuaded midsize general contractors Takamatsu Corp. and Komatsu Construction Co. to sponsor its court-led rehabilitation plan.

Aoki, which filed for court protection from creditors on Dec. 6 under the fast-track Civil Corporate Revival Law with group liabilities of 522 billion yen, also said it asked the Tokyo District Court for permission to eliminate 100 percent of its shareholder capital.

In a joint statement, Aoki, Takamatsu and Komatsu Construction said they "reached an agreement in principle today on the rehabilitation support . . . after negotiations based on requests for aid cooperation from Asahi Bank," which serves as the main lender for all three firms.

The three companies will decide on the details of the assistance through further consultations, they said.

Osaka-based Takamatsu has a strong business base in condominium construction in the Kansai region and Tokyo-based Komatsu Construction's operations range from marine civil engineering to land development for individual landowners.

The selection of the two sponsors paves the way for Aoki to begin legal rehabilitation procedures that the court has already decided to launch under the fast-track bankruptcy process, which requires the company to submit a final rehabilitation plan by Wednesday.

If approved by creditors, the plan could commence in June.

Takamatsu brought Komatsu Construction, a subsidiary of the major construction machinery manufacturer Komatsu Ltd., under its wing through a nonhostile takeover in 2000.

Takamatsu, listed on the second section of both the Tokyo Stock Exchange and the Osaka Securities Exchange, has been working to cut costs through such measures as reducing its back-office clerical workforce due to declining profit margins in its mainline condominium operations.

But its operational base will expand by becoming the sponsor of Aoki, which boasts strength in civil engineering and the hotel business.

With about 1,370 employees, Takamatsu posted consolidated net profits of 1.6 billion yen on revenues of 83 billion yen in the year that ended last March.

Komatsu Construction, listed on the TSE first section, chalked up group net profits of 30 million yen on revenues of 64.2 billion yen with a workforce of about 560.

Aoki collapsed amid the harsh business environment as well as stricter bank inspections by the Financial Services Agency.

In 1999, a group of 29 creditors banks, including Asahi Bank and Industrial Bank of Japan, waived 204.9 billion yen in claims to Aoki under a restructuring plan.

But the plan hit a snag due to the prolonged slump of the construction market and apparently because both Asahi Bank and IBJ reclassified Aoki as a debtor at risk of failure in view of the FSA's special inspection.

Aoki, established in 1947, sank into serious trouble due to massive real estate development-related investment during the bubble economy, which collapsed in early 1990s.

In the year that ended last March 31, it posted group net profits of 600 million yen on revenues of 231.9 billion yen. But its consolidated liabilities exceeded assets by 65.1 billion yen.