The administrator of failed lender Takefuji Corp. said Wednesday he has selected J Trust Co., another Japanese lender, as Takefuji's turnaround sponsor to replace A&P Financial Co. of South Korea.
The South Korean consumer loan company has withdrawn its earlier plan to support Takefuji, lawyer Eiichi Obata said.
J Trust will acquire Takefuji for ¥25.2 billion on March 1, after Takefuji hives off a division responsible for repaying creditors. J Trust's subsidiary Lopro Corp. will take over Takefuji's lending operations.
J Trust President Nobuyoshi Fujisawa will put up ¥7 billion for the acquisition as no bank financing for the deal has yet been fixed.
A&P had offered to acquire Takefuji on Dec. 1 under a Takefuji rehabilitation plan approved by the Tokyo District Court.
But A&P found it difficult to raise funds for the acquisition as the company is now expected to face administrative punishment for charging interest rates over the legal limit on loans in South Korea.
J Trust and A&P were among companies that made bids in late March to sponsor Takefuji's turnaround.