Misawa Homes Holdings Inc. said Thursday it has asked UFJ Bank and other creditor banks to purchase 100 billion yen worth of new preferred shares it plans to issue by the end of the current fiscal year.
Misawa President Chiyoji Misawa told a news conference that the share issue is a core part of a new medium-term restructuring plan drawn up by the struggling homebuilder.
UFJ Bank, a core unit of UFJ Holdings Inc. and the main lender to Misawa Homes, provided 70 billion yen in financial support for Misawa in March 2002.
Preferred shares do not usually carry voting rights, though their holders have priority over common stockholders on dividend payments and assets in the event of liquidation.
Misawa said the fresh restructuring plan through fiscal 2005 is designed for "a capital increase rather than financial support" by creditor banks in the form of debt waivers.