Takefuji files reorganization plan based on consumer finance transfer

By Caroline Salls

Pittsburgh, July 15 - Takefuji Corp. filed a reorganization plan with the Tokyo District Court, according to a news release.

The company said it hopes to have the plan confirmed by the end of October or early November.

Under the plan, reorganized Takefuji will transfer its consumer finance business via a company split to a group company of sponsor A&P Financial Co., Ltd.

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 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 is 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, according to the release.

Takefuji is a Tokyo-based consumer finance company.

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