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