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Condominium developer Nichimo files for bankruptcy protection.

TOKYO, Feb. 13 Kyodo

Condominium developer Nichimo Co. said Friday it has filed for bankruptcy protection with liabilities totaling about 75.7 billion yen due to slumping sales of condominiums amid the current financial turmoil.

The company said the Tokyo District Court has accepted its application seeking protection under the Civil Rehabilitation Law.

Nichimo has been seeing slumping sales of condominiums with liabilities totaling 16.7 billion yen in the first three months of the current business year ending in September.

The financial turmoil stemming from the U.S. subprime mortgage crisis has hit the real estate business particularly hard.

Despite a series of restructuring efforts to return to profitability, Nichimo, faced with difficulty in raising operating funds, said it decided to apply for bankruptcy protection.

In the business year that ended last September, Nichimo posted a net loss of 10.3 billion yen on sales of 35.4 billion yen.

Established in 1955, Nichimo has been selling midsize to high-rise condominiums mainly in Tokyo and Osaka. After expansion during the period of Japan's asset-inflated bubble economy, Nichimo's business hit a stalemate and has been aiming to get back on track with the help of financial institutions.

The Tokyo Stock Exchange said it will delist Nichimo from the Second Section of the Tokyo Stock Exchange on March 14.
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Comment:Condominium developer Nichimo files for bankruptcy protection.
Publication:Japan Weekly Monitor
Geographic Code:9JAPA
Date:Feb 23, 2009
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