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OSAKA — The family of the late Konosuke Matsushita, founder of the Matsushita group, has decided to extend financial help to Matsushita Investment & Development Inc., a debt-ridden real-estate developer, industry sources said Friday.

The family is likely to acquire part of the approximately 50 billion yen in third-party allotment shares that the group is planning to purchase from the developer, the sources said.

Matsushita Investment’s five creditor banks, including Sumitomo Mitsui Banking Corp., plan to buy around 40 billion yen in shares.

The five banks — which include the Industrial Bank of Japan, the Bank of Tokyo-Mitsubishi, Asahi Bank and Sumitomo Trust & Banking Co. — have said they would extend financial aid on condition the family also shoulder part of the burden.

Matsushita Investment has strong ties with the Matsushita family. Its first president was Konosuke Matsushita.

Matsushita Investment failed in its real-estate investments in Japan and abroad during the bubble economy of the late 1980s. In fiscal 2000, its interest-bearing debt stood at around 700 billion yen.

The company had been taking steps to reduce its debt by selling shares in Matsushita Electric Industrial Co. , the core company of the Matsushita group, as well as securitizing the Twin 21 towers in Osaka.

Aid on the way

Sumitomo Mitsui Banking Corp., four other banks and the Matsushita group of companies will help recapitalize Matsushita Investment & Development Inc., a debt-ridden real estate developer in the group led by Matsushita Electric Industrial Co., according to sources close to the group.

Accepting the banks’ help underscores the decline of the financial base of the Matsushita group, formerly known as “Matsushita Bank” because of its abundant funds.

Under the recapitalization scheme, Matsushita Investment & Development will float and sell a combined 90 billion yen worth of new shares to the banks and Matsushita group companies. , the sources said.

Matsushita Investment & Development, the effective manager of the assets and properties of the Matsushita group, is swamped by 700 billion yen in interest-bearing liabilities.

The other creditor banks that will make additional investments are the Industrial Bank of Japan, the Bank of Tokyo-Mitsubishi, Asahi Bank and Sumitomo Trust & Banking Co.

The five creditor banks will buy a combined 40 billion yen in new shares of Matsushita Investment & Development, while the Matsushita group companies will buy a combined 50 billion yen in new shares, they said.

Matsushita Investment & Development is expected to ask creditor banks to help recapitalize it further, they added.

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