A rehabilitation plan filed by the Nikkan Kogyo Shimbun business daily was approved Thursday by the Ministry of Economy, Trade and Industry.
The approval allows the ailing paper to almost halve the amount of taxes on some 3.8 billion yen in fresh funds it plans to obtain via a debt-for-equity swap involving creditor banks, including its main creditor, Resona Bank.
Concerning its reasons for approving the plan, METI said it appreciated the daily's focus on industrial technology and coverage of small and midsize companies.
Under the rehabilitation plan, the Tokyo-based newspaper will cut its workforce from 730 employees to 460, and outsource printing operations. The newspaper has been hit hard by diminishing circulation and a drop in advertising revenue.