I hope that the Government will wind up picking up the losses for Hazama, at least as far as NCB is concerned. I suppose if Shinsei Bank is eating part of the losses, NCB will have to do likewise, but the details of who and when and how much are still not clear:
Tuesday, August 8, 2000
Hazama Creditor Banks To Agree On Loan Waivers
TOKYO (Nikkei)--Three main creditor banks of Hazama Corp. (1837) are expected to reach as early as this week an agreement on forgiving some 105 billion yen in debt owed by the second-tier general contractor, The Nihon Keizai Shimbun learned Monday.
Under the agreement, Shinsei Bank will forgive around 12 billion yen of the 43 billion yen loan extended to Hazama. In addition to the 55 billion yen and 35 billion yen lent to Hazama by Dai-Ichi Kangyo Bank (8311) and Mitsubishi Trust & Banking Corp. (8402), the two banks will jointly purchase the remaining debt of more than 30 billion yen after Shinsei Bank writes off the 12 billion yen.
The ailing general contractor will continue negotiations with Nippon Credit Bank, which will be sold to a consortium led by Softbank Corp. (9984) in September.
Hazama will also ask five banks, including DKB and Mitsubishi Trust & Banking, to buy by fiscal year-end about 8 billion yen in new shares that it will issue in private placements. The other three banks are Asahi Bank (8322), Sanwa Bank (8320) and Sakura Bank (8314).
This past May, Hazama asked its four major banks -- DKB, Mitsubishi Trust & Banking, Shinsei, and Nippon Credit Bank -- to waive a total of 110 billion yen in loans.
(The Nihon Keizai Shimbun Tuesday morning edition |
