• Kyodo

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Struggling Konoike Construction Co. said Thursday it will replace its top manager, Kazusue Konoike, and finalize a business reconstruction plan that includes a capital increase.

The second-tier construction firm said Konoike, 51, who currently serves as both chairman and president, will on Wednesday become head of the board without the right to represent the firm.

Shoichi Oiwa, 64, a senior managing director, will take over the presidency, it said.

Oiwa joined the company in 1962 and has served as senior managing director since December 2000.

The company said it has asked its lenders, including main creditor Sumitomo Mitsui Banking Corp. to provide financial help to boost its capital and reconstruct its businesses.

The negotiations are in the final stages, with SMBC sounding positive, Konoike Construction said.

The reconstruction plan also includes spinning off the real estate business so it can focus on the construction business, the company said.

It did not disclose the amount of the capital increase.

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