Creditors on Monday approved a rehabilitation plan for troubled supermarket chain operator Nagasakiya Co., according to informed sources.

The move prompted Mizuho Corporate Bank to declare it will waive 79.45 billion yen of the supermarket’s group debts, provided the rehabilitation plan wins court approval, the sources said.

The rehabilitation plan reportedly centers on the absorption by Nagasakiya of its two affiliates, Nagasakiya Estate and Kanazawa Nagasakiya.

It also stipulates that Hiroshi Hashimoto, chairman of Kyoden Corp., a circuit board manufacturer based in Nagano Prefecture, will become Nagasakiya’s new president, they said.

Hashimoto has already served as an administrator for Nagasakiya.

The creditors are scheduled to submit the rehabilitation plan to the Tokyo District Court on Sunday, the sources added.

Nagasakiya, a midsize firm based in Tokyo, effectively went under in February 2000 when it filed for court protection from its creditors, together with its affiliates.

The sources said Nagasakiya will liquidate practically all of its capital after absorbing the affiliates.

A business affiliated with Kyoden and a firm run by Yoshikazu Kato, chairman of frozen food company Katokichi Co., are expected to purchase about 4 billion yen in new shares that will be issued by Nagasakiya in an effort to generate fresh funds, they said.

U.S. fund in takeover

U.S. investment fund Metropolitan announced a plan Monday to take over failed Ishikawa Bank after formally notifying Japan’s Deposit Insurance Corp.

The U.S. fund, headquartered in Washington state, expressed its intent to take over all operations and employees of Ishikawa Bank, a Kanazawa-based second-tier regional bank that went bust late last year.

Ishikawa Bank filed for insolvency proceedings in December with the Financial Services Agency, which immediately appointed three administrators to take charge of the bank.

The administrators are in talks with some local Japanese financial institutions over the sale of Ishikawa Bank, but the negotiations are proceeding with difficulty.

In March, the FSA decided to hand over Ishikawa Bank’s operations to the Bridge Bank of Japan, a government-run entity charged with temporarily assuming the assets and deposit liabilities of failed banks.

If Ishikawa Bank is sold to Metropolitan, it would be the U.S. fund’s first entry into the Japanese market.

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