Nikko Antfactory K.K. and another investment firm announced a basic agreement Thursday to aid the reconstruction of Honma Golf Co., a leading manufacturer of golf-related items.
Nikko Antfactory, a subsidiary of Nikko Cordial Corp., and Milestone Turnaround Management Co. will become the sponsors for the rehabilitation of Honma Golf, which has debts totaling 30.5 billion yen.
Tokyo-based Honma Golf intends to draw up a rehabilitation program by November, including the amount of investment by the sponsors and its new management setup, and to hold a creditors' meeting around January for approval of the program.
The two sponsors are expected to invest in Honma Golf by the end of March, they said.
Honma Golf will continue operations at a plant in Sakata, Yamagata Prefecture, with a workforce of about 800 there, while closing money-losing sales offices in Japan and overseas.