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The government-backed Industrial Revitalization Corp. of Japan has chosen Orix Corp. to sponsor the rehabilitation of struggling condominium builder Daikyo Inc., according to sources.

The amount of financial assistance by such lenders as UFJ Bank and Resona Bank will come to less than the expected 130 billion yen, with the amount of debt waivers coming down to 100 billion yen as the value of Daikyo’s asset evaluation has increased, the sources said.

The remaining 30 billion yen will be made through debt-for-equity swaps.

The sum was initially expected to total 176.5 billion yen, including 146.5 billion yen in debt waivers.

Daikyo President Jihei Yamazaki is expected to resign from his position but will stay with the company. Orix will probably send an executive to take over the top post, the sources said.

Daikyo will concentrate its management sources on its mainline condominium business, they said.

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