The Industrial Revitalization Corp. of Japan is set to bail out Matsuya Denki Co., a troubled Osaka-based retailer of home appliances, industry sources said Thursday.
Matsuya Denki is expected to file for protection from creditors at the Osaka District Court, with an estimated 60 billion yen in liabilities, the sources said.
It will be the first time for the IRCJ to rescue a company in the middle of court-guided rehabilitation procedures.
The IRCJ is scheduled to make a formal decision on Matsuya Denki at a meeting Friday, the sources said.
Several companies, including corporate revival funds, are also considering putting up capital for Matsuya Denki, they said.
Matsuya Denki is expected to set up a new company that will take over profitable outlets. Unprofitable operations will probably be liquidated.
Earlier this year, the IRCJ named four troubled firms as its first set of bailout targets. These include natural resource developer Mitsui Mining Co.
Matsuya Denki, established in 1951, is currently listed on the first section of the Osaka Securities Exchange.
The company, faced with increasing competition from major appliance retailers in the Kanto region, has paid no dividend since fiscal 2001 due to accumulated losses.
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