Court approves Dai-Ichi Hotel rehabilitation plan.
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.
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|Publication:||Japan Weekly Monitor|
|Date:||Aug 6, 2001|
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