The state-backed Industrial Revitalization Corp. of Japan said Tuesday it will scrap an already-endorsed scheme to bail out struggling natural resources firm Mitsui Mining Co. because the rescue plan needs revision.
IRCJ President Atsushi Saito said the entity will instead re-examine a revised rehabilitation plan to be submitted by Mitsui Mining.
“We have found out that we need to review the facts that had become preconditions for the rehabilitation plan,” Saito told a news conference.
Mitsui Mining’s past balance sheets apparently contained errors. If illegal procedures such as window-dressing are discovered, the IRCJ may dump its plan to aid Mitsui Mining.
The IRCJ informed the firm’s main lender, Sumitomo Mitsui Banking Corp., after it discovered the problems with the rescue plan. Mitsui Mining then told the IRCJ that it suddenly needed to revise the plan, IRCJ officials said.
On Sept. 2, the IRCJ said it had decided to bail out Mitsui Mining and three of its group companies.
Under the initial rescue plan, the IRCJ was to hold more than 50 percent of Mitsui Mining’s outstanding shares, effectively turning the Tokyo-based natural resource developer into a state-run entity.
Mitsui Mining participated in Japan’s postwar recovery.
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