Struggling trading house Sojitz Holdings Corp. officially announced Wednesday it will get a 370 billion yen capital injection from financial institutions, including UFJ Holdings Inc. and UBS AG, to clean up its balance sheet.
Sojitz is one of the largest problem borrowers of UFJ, which is under pressure to slash bad loans to meet a target set by the nation's banking regulator as well as to prepare itself for a merger with Mitsubishi Tokyo Financial Group Inc.
The capital injection is part of a turnaround plan also unveiled Wednesday. It will be Sojitz's second bailout by banks. The first was in May 2003, when the trading house raised capital of around 270 billion yen from its lenders.