Takefuji Bank in Japan May Seek Protection From Creditors, Nikkei Says

Discussion in 'Wall St. News' started by ASusilovic, Sep 27, 2010.

  1. Sept. 27 (Bloomberg) -- Takefuji Corp., a Japanese consumer lender, may seek protection from creditors, Nikkei English News said, without citing anyone.

    The company’s liabilities were 430 billion yen as of June 30, the report said.
  2. Sept. 27 (Bloomberg) -- Acom Co., a Japanese consumer lender, plunged the most in 20 months in Tokyo trading after the Nikkei newspaper reported Takefuji Corp. is preparing to file for bankruptcy protection.

    Acom dropped 9.2 percent to 1,357 yen as of 9:07 a.m. on the Tokyo Stock Exchange, headed for the biggest decline since January 2009. Shares of Promise Co. were untraded and bid at 744 yen, compared with yesterday’s closing price of 774 yen.

  3. Sept. 27 (Bloomberg) -- Takefuji Corp. said it’s considering various steps to restructure itself, following a Nikkei newspaper report that the Japanese consumer lender is preparing to file for bankruptcy.

    Takefuji was poised to plunge 29 percent as Aiful Corp. led rivals as much as 23 percent lower in Tokyo. Japan’s third- biggest consumer lender, with 430 billion yen ($5.1 billion) in liabilities, is in final talks to file for bankruptcy at the Tokyo District Court, the Nikkei reported, without saying where it got the information.

    Should Takefuji fail, it would become the biggest casualty of Japan’s four-year crackdown on consumer lenders. The Tokyo- based company and rivals Aiful, Promise Co. and Acom Co. are battling to survive after the 2006 clampdown on coercive lending practices and tighter borrowing laws forced them to repay billions of dollars in overcharged interest.