The Industrial Revitalization Corp. of Japan will make a formal decision to bail out Mitsui Mining Co. on Friday, according to informed sources.

The government’s revival body is expected to finalize the decision during a meeting of the Industrial Revitalization Committee, the sources said Tuesday.

The IRCJ had suspended an earlier decision to help revive the troubled natural resource firm due to problems with a business rehabilitation plan submitted by the company Sept. 1.

Seeking swift rehabilitation procedures, the IRCJ will aim to conclude negotiations with some 40 financial institutions over the purchase of claims against Mitsui Mining within a month, the sources said.

According to a revised rehabilitation plan, Mitsui Mining will ask its main creditor bank, Sumitomo Mitsui Banking Corp., for a fresh capital injection of 15 billion yen to 20 billion yen.

In addition, SMBC is expected to establish a fresh credit line to the company worth around 15 billion yen to secure operating funds, they said.

On Sept. 2, the IRCJ said it had decided to rescue Mitsui Mining, along with three group companies, under a bailout mechanism.

But it withdrew this statement Sept. 30, with unreported additional losses having been identified in the company’s balance sheet.

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