Printer Friendly

Court approves Dai-Ichi Hotel rehabilitation plan.

TOKYO, July 31 Kyodo

The Tokyo District Court has authorized a rehabilitation plan submitted by Dai-Ichi Hotel Ltd. and four related companies which filed for court protection from creditors in May last year, receivers of the failed hotel operation group said Tuesday.

Despite total liabilities of 148.1 billion yen, the plan involves four major creditors waiving a combined 98% of their claims on 102.7 billion yen in unsecured loans, including those from smaller lenders, said Taro Ohashi and Hideo Seto.

On Wednesday, Dai-Ichi Hotel will absorb two of the group companies while the two other firms, Oita Dai-Ichi Hotel and Tokyo Dai-Ichi Hotel Fukuoka, will merge to form Dai-Ichi Hotel Kyushu.

Dai-Ichi Hotel and Dai-Ichi Hotel Kyushu will then reduce capital by 100% and raise 1 billion and 200 million yen, respectively, through private placement of new shares with Hankyu Corp., the receivers said.

Hankyu, an Osaka-based railway operator headed by Ohhashi, has supported Dai-Ichi Hotel's rehabilitation efforts since the company filed for court protection under the corporate rehabilitation law.

It intends to expand its hotel operations in a tie-up with the Tokyo-based Dai-Ichi Hotel group.
COPYRIGHT 2001 Kyodo News International, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Japan Weekly Monitor
Date:Aug 6, 2001
Words:188
Previous Article:Top gangster arrested after 4 years in hiding.
Next Article:Calbee to recall 'Kappa Ebisen' snack.
Topics:


Related Articles
Troubled Dai-Ichi Hotel announces restructuring plan+.
G-8 venue Seagaia saddled with 120 bil. accumulated loss+.
Hankyu ready to put 2-3 bil. yen into failed Dai-Ichi Hotel.
LEAD: Hankyu to help Dai-Ichi Hotel.
Troubled Dai-Ichi Hotel to become Hankyu railway subsidiary+.
Court approves Seagaia rehabilitation plan.
Retailer Aeon to become sponsor for failed Mycal.
Mycal receives court approval to launch rehabilitation.
CCC to take over 32 of Dai-Ichi Katei Denki's stores.

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters