FUKUOKA (Kyodo) The key creditor banks of Daiei Inc. obtained approval from other financial institutions on a debt-reduction plan Tuesday.
The move came as the creditors finalized a bailout package for the debt-ridden retail chain operator.
All 35 institutions involved agreed on the details of the package, which focuses on a debt waiver of about 23 billion yen from UFJ Bank and five other main creditor banks.
The package is in keeping with a draft plan drawn up last year.
Under the deal, Daiei will sell the Fukuoka Dome baseball stadium and the adjacent Sea Hawk Hotel and Resort -- two core operations of the retailer's so-called Fukuoka business -- to U.S. investment fund Colony Capital LLC next month.
Colony Capital plans to build a shopping mall as well as family-oriented theme park facilities to create a more attractive seaside resort complex.
It is seeking to be less dependent on operations revolving around the Fukuoka Daiei Hawks baseball team.
Colony Capital may start building the shopping mall by the end of the year, with an eye to soliciting top-name sports brands.
It may also overhaul the hotel business via a major remodeling initiative.
Daiei President Kunio Takagi reiterated Tuesday that the company will retain ownership of the Hawks.
Takagi brushed aside speculation that Daiei will sell the Hawks, whose home games attracted a club-record 3.22 million people last year, when they won the Pacific League and went on to capture the Japan Series championship.
Colony Capital will invest 15 billion yen to bring the two operations under its arm. It will also take over 60 billion yen of Daiei's 110 billion yen interest-bearing debt in the Fukuoka business.