Natural resources firm Mitsui Mining Co. and condominium builder Dia Kensetsu Co. are considering seeking a bailout from the Industrial Revitalization Corp. of Japan, sources said Friday.
The government-backed IRCJ began operations in May to help rehabilitate heavily indebted companies deemed still viable, and is expected to pick its first clients by the end of August.
Earlier this month, struggling bus firm Kyushu Industrial Transportation Co., based in Kumamoto, became the first company to announce publicly its intention to ask for the IRCJ’s help.
The sources said these three firms may be among the first the public entity bails out.
Sadakazu Tanigaki, state minister in charge of industrial revitalization, was tight-lipped on the three firms.
“I cannot comment on specific companies,” Tanigaki said during a news conference. “The IRCJ was set up to break the siege mentality crippling the Japanese economy. I hope (many companies) apply for help.”
Mitsui Mining and Dia Kensetsu also plan to ask for financial help, including debt waivers, from their creditor banks and to seek a bailout from the IRCJ, the sources at the firms said.
The two companies hope they can achieve a revival within three years if they obtain help from their banks and the IRCJ, do away with unprofitable operations and concentrate resources on core businesses, the sources said.
Since it began operating, the IRCJ has carefully examined rehabilitation plans for about 20 candidate firms, assessing their viability.
Mitsui Mining posted a group net loss of 52.5 billion yen in the business year that ended March 31.
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