National News Banks force embattled Daiei into seeking help from IRCJ

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Pressure from creditor banks has forced debt-ridden retailer Daiei Inc. into deciding to seek help from the Industrial Revitalization Corp. of Japan (IRCJ), officials said Oct. 13.

Informed sources said Daiei President Kunio Takagi made the decision because Daiei would not be able to win auditors' approval of its April-September financial report in the face of threats by the banks to cancel the retailer's loans.

Daiei applied to the IRCJ for support Oct. 13, along with the main creditors - UFJ Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp. IRCJ was expected to accept the application, the sources said.

Daiei's reviｖal would be the largest corporate rehabilitation for the IRCJ since its establishment in May 2003. The banks are likely to provide a total of between ¥400 billion and ¥500 billion in financial assistance to Daiei, the sources said.

The IRCJ will now work on Daiei's rehabilitation plan based on an earlier blueprint featuring the closure of at least 46 outlets by the end of the current fiscal year. Depending on asset-assessment results, Daiei may be forced to close down more stores and slash a substantial number of jobs, the sources said.

But on the contentious issue of whether to sell the Daiei Hawks professional baseball club, the IRCJ is likely to let the retailer keep the baseball club, along with profitable affiliated credit card company OMC Card Inc., they said. (The Japan Times)

ダイエー、再生機構活用決定

大手スーパーのダイエーは13日、民間主導の経営再建を断念し、産業再生機構に支援を要請した。今後、再生機構による資産査定やスポンサー探しが行なわれる。

Shukan ST: Oct. 22, 2004

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