Struggling consumer credit firm Orient Corp. said Friday it will issue 150 billion yen in preferred shares to be purchased by Mizuho Corporate Bank to boost its depleted capital base.

Mizuho, meanwhile, will send its managing director to serve as Orient’s president.

This will mark the firm’s second bailout by Mizuho, which bought 200 billion yen in preferred shares in August.

Under the new plan, the actual purchase will take place sometime in the next fiscal year, pending approval by shareholders in June.

The firm said Orient Chairman Hiroshi Arai and President Hisashi Kanai will resign in June to make way for Ikuo Kaminishi, Mizuho’s managing director, to take the helm.

Orient also said it has secured a 344.5 billion yen syndicated loan from Mizuho Corporate and 19 other banks, and will absorb a one-time charge of 57 billion yen for writing down its golf course and resort development subsidiaries and increasing loan loss reserves.

It revised its group net loss forecast for the current fiscal year to 107 billion yen on revenue of 296 billion yen, marking the fourth consecutive yearly net loss.

Orient, the country’s largest auto loan firm, has seen its capital disappear since the burst of the asset-inflated bubble economy. Many of its mortgage-backed corporate loans have soured, forcing the firm to write down its assets.

These losses should end in this fiscal year and Orient should return to profitability afterward, Kanai told a news conference.

“This is the end of our negative legacy,” he said. “We will strengthen our finances and launch an aggressive sales offensive.”

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