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Takefuji plan of reorganization confirmed by Tokyo District Court
By Caroline Salls
Pittsburgh, Oct. 31 - Takefuji Corp.'s reorganization plan was confirmed by the Tokyo District Court on Monday, according to a news release.
The company said that 100% of its secured reorganization creditors and 85.43% of its unsecured reorganization creditors voted in favor of the plan, including 88.07% of overpaid interest creditors.
Takefuji said it will start making repayments under the plan in mid-December.
A&P Financial Co., Ltd. will rebuild the company's consumer finance business through a company split in accordance with the plan.
After the split, Takefuji said the reorganized company will secure funds for a second repayment through asset sales and prosecution of lawsuits.
As previously reported, funds for plan payments will come from cash and deposits on hand, the money paid by the sponsor for the split and the proceeds from the disposal of assets and collection of claims.
Tax and duty claims, secured reorganization claims, preferred reorganization claims and labor claims will be repaid in full within three months of plan confirmation.
A total of 3.3% of general unsecured reorganization claims will be repaid within one year of the plan confirmation, and a second general unsecured claim repayment will be implemented after the realization and collection of all assets are completed if any funds are available for repayment after deducting administration expenses from the company's cash and deposits.
The balance of reorganization claims after the second repayment will be discharged, the company said in a July news release.
Outstanding shares will be acquired and canceled by the reorganizing company without charge.
Takefuji is a Tokyo-based consumer finance company.
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