FUKUOKA (Kyodo) Two subsidiaries of struggling retailer Daiei Inc. reached an out-of-court settlement Friday with Park Credit Management Co. to repay 92 percent of overdue loans to the Cayman Islands-based investment firm.
The Tokyo District Court in August ordered the two firms to repay 1.38 billion yen in overdue loans to Park Credit.
The two companies are in charge of the Daiei group's Fukuoka Dome baseball stadium and the adjacent Sea Hawk Hotel and Resort and commercial complex.
According to a complaint filed by Park Credit, K.K. Fukuoka Dome and K.K. Fukuoka Daiei Real Estate borrowed 1.4 billion yen from the failed Chiyoda Mutual Life Insurance Co. between 1995 and 1997.
Claims on the loans were later sold to Park Credit after Chiyoda went bankrupt in October 2000. But the Daiei firms repaid only a small part of the total.
Among other creditors that have turned to the court to recover loans is Sumitomo Life Insurance Co.