Business

UFJ may tap Toyota to aid Misawa

UFJ Bank is poised to ask Toyota Motor Corp. for assistance in rebuilding ailing borrower Misawa Homes Holdings Inc. by investing in the company’s core unit, Misawa Homes Co., sources said Wednesday.

If the bank makes a formal request to Toyota, the automaker might agree because an alliance with the housing builder could boost business at Toyota’s own housing unit, Toyota Home, they said.

UFJ is expected to ask Toyota to first take a 20 percent equity stake in Misawa Homes.

Suffering from slumping sales of detached homes, Misawa Homes Holdings incurred a group net loss of 128.7 billion yen for fiscal 2003.

Misawa Homes has received 170 billion yen in financial aid from UFJ, but it is still saddled with interest-bearing liabilities totaling 296.3 billion yen.

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