A capital reduction or other unfavorable steps for shareholders will probably be included in a new revival plan for Daiei Inc., Kazuyoshi Kaneko, minister in charge of industrial revitalization, suggested Tuesday.
“I believe they will consider having the revival plan include shareholder responsibility,” Kaneko said at a news conference.
Late last week, Daiei presented its three main creditors — UFJ Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp. — with a new plan to turn its business around.
The plan says trading house Marubeni Corp. will assist in the rehabilitation efforts. But it does not include seeking assistance from the Industrial Revitalization Corp. of Japan, though the three banks are urging the retailer to accept IRCJ aid.
Kaneko said he has not seen the content of the plan, but “what matters is whether it can win the approval of the market.”
Concerning media reports that Daiei President Kunio Takagi plans to resign to take responsibility for the company’s slumping business, the minister said, “I think he will think about whether he should resign or not during the process of finalizing the revival plan.”
Takagi is expected to meet with the executives of the creditor banks later this week to discuss the details of the plan.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.