Yamato Kogyo to liquidate real estate subsidiary.
Steelmaker Yamato Kogyo Co. said Wednesday it will liquidate Yamato Estate Co. due to the wholly owned subsidiary's excessive liabilities by the end of March.
Operations at the real estate company will be transferred to Yamato Kogyo, the steelmaker said.
Yamato Kogyo said it decided to liquidate its subsidiary as it believes operations at the firm will further deteriorate due to a rise in interest rates on bank loans.
Yamato Estate, established in 1985 in Hyogo Prefecture, rents buildings for business use. But it suffered a downturn in business since Japan's asset-inflated bubble burst a decade ago.
The company had 8.2 billion yen in excessive liabilities in the year ended Sept. 30, 2001.
Meanwhile, Yamato Kogyo said it has spun off its rail parts manufacturing division into a new firm.
The company said it will hasten its efforts to spin off its divisions into separate companies and change itself into a holding company in the future.
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|Publication:||Japan Weekly Monitor|
|Date:||Jan 28, 2002|
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