Printer Friendly

Troubled Dai-Ichi Hotel announces restructuring plan+.

TOKYO, April 4 Kyodo

Dai-Ichi Hotel Ltd., a financially troubled hotel franchise operator, unveiled Tuesday a restructuring plan after warning investors that it expects a capital deficit for the year ending March 31, 2000.

Listed on the Tokyo Stock Exchange's First Section, Dai-Ichi Hotel is laden with huge debts and was hit by the October 1998 collapse of its main creditor bank, the Long-Term Credit Bank of Japan.

Tokyo-based Dai-Ichi Hotel anticipates an unconsolidated net loss of 29.5 billion yen for fiscal 1999, resulting in a negative net worth of 23 billion yen, the company said.

The restructuring plan calls on creditor banks to give up claims on loans worth 23 billion yen, equal to the company's capital deficit, and calls for a capital reduction of 3.7 billion yen.

According to the restructuring plan, which covers the two-year period through March 2002, Dai-Ichi Hotel will also request its major shareholder, Hankyu Corp., to provide financial backing and send an executive to help the hotel company.

The plan also calls for staff cuts and a scaling down of Dai-Ichi Hotel's real-estate business.
COPYRIGHT 2000 Kyodo News International, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2000 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Comment:Troubled Dai-Ichi Hotel announces restructuring plan+.
Publication:Japan Weekly Monitor
Geographic Code:9JAPA
Date:Apr 10, 2000
Words:183
Previous Article:Plan to build houses on Aichi 2005 expo site scrapped+.
Next Article:Dollar higher against yen in early Tokyo trading+.
Topics:


Related Articles
250 major companies hold shareholder meetings.
Bank alliance would spur restructuring by industries.
LEAD: Chiba Kogyo to apply for 60 bil. yen in public funds.
G-8 venue Seagaia saddled with 120 bil. accumulated loss+.
Ripplewood offers to help failed Dai-Ichi Hotel+.
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 Dai-Ichi Hotel rehabilitation plan.

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