• SHARE

Towa Real Estate Development Co. said Tuesday that UFJ Bank and other creditor banks have agreed to a 230 billion yen bailout — 200 billion yen in debt relief and 30 billion yen in debt-for-equity swaps.

Towa said it expects one-time profits of 200 billion yen from the bailout package, allowing it to write off real estate investment losses of some 189 billion yen and some 78 billion yen in claims on its subsidiaries, such as nonperforming loans.

The restructuring program also calls for dipping into its capital reserves to draw 3.3 billion yen and reducing its capital by 23.2 billion yen to 2.6 billion yen to help slash consolidated interest-bearing liabilities by 300 billion yen by the end of March 2005 from 521.3 billion yen as of March 31 this year.

The latest debt relief package follows a loan forgiveness package of 290 billion yen it received in 1999.

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.

SUBSCRIBE NOW