The state-backed Industrial Revitalization Corp. of Japan said Thursday it will help rehabilitate three lodging companies and indicated they would be the last bailouts.
During a meeting of its decision-making Industrial Revitalization Committee earlier in the day, the corporate turnaround agency decided to support Tokyo-based KanayaHotel Enterprise Co. and two other lodging companies.
KanayaHotel accumulated excessive debts due to large-scale capital investments and expansion of business during the bubble economy period, IRCJ officials said.
The two other innkeepers are Okunikko Konishi Hotel and Kamaya Ryokan, the officials said, adding they are both based in Tochigi Prefecture.
All three companies are borrowers from the failed Ashikaga Bank.
Ashikaga Bank, a regional bank based in Utsunomiya in the prefecture, has been nationalized since falling into negative net worth in December 2003.
IRCJ was established in April 2003 as part of the government’s efforts to reduce bad loans held at financial institutions.
The agency, which started up the following month, is charged with helping rehabilitate heavily indebted firms deemed otherwise viable by purchasing their loans held by banks other than their main creditors.
From August 2003 through Thursday, IRCJ picked 41 firms for bailout, including listed ones. They include retail giant Daiei Inc., cosmetics maker Kanebo Ltd., Misawa Homes Holdings Inc., Mitsui Mining Co. and condo builders Daikyo Inc. and Dia Kensetsu Co.
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