Japan´s third largest consumer lender Takefuji filing for bankruptcy protection today

Discussion in 'Wall St. News' started by ASusilovic, Sep 28, 2010.

  1. Sept. 28 (Bloomberg) -- Takefuji Corp., Japan’s third- biggest consumer lender, will file for bankruptcy protection today after being forced to refund borrowers for overcharged interest, said a person with direct knowledge of the matter.

    President Akira Kiyokawa and Executive Vice President Taketeru Takei will resign, said the person, who declined to be identified as the filing hasn’t been made. Director Junichi Yoshida, who is expected to take over as president, will likely announce the decision to file at a news conference today, the Nikkei newspaper reported.

    The lender, founded in 1966, aims to restructure its business as it doesn’t have enough cash to repay borrower claims of overpaid interest that have saddled Japan’s consumer lenders with 4.4 trillion yen ($52 billion) in costs. Rivals Aiful Corp., Promise Co. and Acom Co. may face an increase in claims as borrowers try to beat Takefuji bankruptcy court deadlines.

    “Debtors request refunds not only from Takefuji, but from all their lenders,” Takehito Yamanaka, an analyst at MF Global Equity in Tokyo, said in a report. “Claims may increase temporarily in the next couple of months as lawyers gather debtors.”

    Calls to Takefuji’s headquarters in Tokyo weren’t answered.