LEAD: Hankyu to help Dai-Ichi Hotel.
(EDS: UPDATING WITH CHANGED DATELINE)
The Tokyo District Court decided Tuesday to launch rehabilitation proceedings for the failed Dai-Ichi Hotel Ltd. and four affiliated companies under the auspices of Hankyu Corp., an Osaka-based railway operator.
The court appointed Hankyu President Taro Ohashi and lawyer Hideo Seto as trustees of the Dai-Ichi Hotel group.
The trustees will work out a rehabilitation plan for the group through talks with creditor banks and other parties concerned by July next year for submission to the court.
Hankyu is expected to provide 2-3 billion yen in financial support for the hotel chain operator.
Dai-Ichi Hotel filed with the district court in May for protection from creditors under the Corporate Rehabilitation Law with liabilities of 115.2 billion yen.
At a press conference in Tokyo following the court's decision Tuesday, Ohashi said Hankyu will support Dai-Ichi Hotel because the Tokyo-based hotel chain and Hankyu's hotel chain, based in Osaka, can supplement each other's operations.
Besides, Hankyu has long maintained close ties with Dai-Ichi Hotel, Ohashi said.
Hankyu is Dai-Ichi Hotel's second largest shareholder following Shinsei Bank, formerly the Long-Term Credit Bank of Japan.
U.S. investment company Ripplewood Holdings LLC, which acquired Shinsei Bank in March, was among the companies that offered to help Dai-Ichi Hotel.
|Printer friendly Cite/link Email Feedback|
|Comment:||LEAD: Hankyu to help Dai-Ichi Hotel.|
|Publication:||Japan Weekly Monitor|
|Date:||Jul 10, 2000|
|Previous Article:||Japan Telecom considering offering local services.|
|Next Article:||Sogo chairman asked to turn over more personal assets.|