Daiei Inc. President Kunio Takagi told industry minister Shoichi Nakagawa in Sunday that his firm will not ask for support from the Industrial Revitalization Corp. of Japan by the Tuesday deadline set by its major creditor banks, ministry and company sources said.
But Takagi vowed to cooperate with IRCJ assessments of the retail giant’s assets as requested by Nakagawa, the sources said.
After the meeting, Takagi told reporters his company will hold an extraordinary board meeting Monday to make its final decision, without elaborating.
But the sources said Daiei is expected to decide at the board meeting not to seek support for now, and will hold private-sector bidding Oct. 18 to select companies that will help the retailer.
“I urged him to cooperate with the asset assessments” by the government-backed IRCJ, Nakagawa told reporters after the meeting.
Daiei’s main creditor banks — UFJ Bank, Sumitomo Mitsui Banking Corp. and Mizuho Corporate Bank — have asked Takagi to decide by Tuesday whether to apply for IRCJ support.
Takagi has said his company can revive on its own.
The IRCJ has also told Daiei in a letter to decide by Tuesday whether to accept support while urging the retailer to let the IRCJ assess the quality of its assets.
Nakagawa urged IRCJ President Atsushi Saito on Friday to allow Daiei to continue seeking sponsors on its own in exchange for letting the IRCJ fully assess the quality of its assets.
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