The Tokyo District Court said Monday it has approved a rehabilitation plan submitted by Shokusan Jutaku Sogo Co., a failed builder of custom-made houses.

The Tokyo-based Shokusan Jutaku will start repaying its debts in line with the plan when court approval is finalized in about a month, the court said.

The company filed for court protection from creditors Jan. 13 with unconsolidated liabilities of 13.5 billion yen.

Under the rehabilitation, Shokusan Jutaku will withdraw from building new homes. It will sell its Homest brand of custom-made homes to Painthouse Co., a house-painting and renovation firm in Kanagawa Prefecture.

Shokusan Jutaku has been delisted from the first section of the Tokyo Stock Exchange.

The company will reduce its capital to zero and issue new shares for allotment mainly to Misawa Homes Co., a major builder of prefabricated wooden houses.

Shokusan Jutaku will use the proceeds from the new share issue to focus operations on renovation, maintenance and repaying its debt, company officials said.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.