The president of the Industrial Revitalization Corp. of Japan said Wednesday the government’s revival body is positive about providing support to revive cosmetics maker Kanebo Ltd.
The IRCJ’s involvement in Kanebo’s rehabilitation will provide “neutrality, as many creditors are involved,” IRCJ President Atsushi Saito told Kyodo News.
But Saito said the IRCJ cannot decide whether to support Kanebo until it analyzes the company’s revival plan and assets.
He did not say when the IRCJ would decide. The entity has taken between one and three months in previous cases.
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’s revival plan calls for spinning off its cosmetics operations into a new company.
It wants the IRCJ to buy its debts at book value so it can receive the maximum possible financial assistance from the entity.
Saito said the IRCJ would buy the debts “in an amount that reflects the value of the cosmetics business.”
On Tuesday, Shigemitsu Miki, chairman of the Japanese Bankers Association, urged the IRCJ to buy creditors’ claims on loans to Kanebo at a fairly assessed value instead of their book value.