The Industrial Revitalization Corp. of Japan might spend up to 490 billion yen to bail out struggling cosmetics maker Kanebo Ltd., sources said Wednesday.
The money would comprise a maximum 350 billion yen to buy Kanebo's loans held by banks other than its main bank, Sumitomo Mitsui Banking Corp., and up to 140 billion yen as a planned IRCJ investment in a new company that would take over Kanebo's mainstay cosmetics operations, they said.
The IRCJ, which started operations in May, is charged with helping revive heavily indebted companies deemed otherwise viable by buying their loans held by creditor banks other than their main banks.
Kanebo is hoping to wipe out its negative net worth by utilizing an IRCJ fund injection.