TPG considers investment into Takefuji - report

Sources told Reuters that Takefuji is in need of capital after Korean firm A&P Financial, which was given the go-ahead to invest JPY28.2 billion ($363 million) in July, has yet to provide the cash. A&P Financial beat Cerberus Capital Management, TPG and J Trust to provide the backing and take over the company, causing sources to say that the time that A&P's involvement would enable Takefuji to continue with its lending business, and that as much as 24% of its debts would be repaid.

However, without A&P's capital, the company faces liquidation. Takefuji filed for bankruptcy last year after struggling with JPY433 billion of outstanding debt.

The newswire added that Takefuji had planned in to split its business into two in November, but the process has been delayed until the end of this month, suggesting that the scheduled restructure plan has become derailed.

Takefuji and other Japanese lenders have struggled since 2006, when Japanese regulators ruled that they had charged too much interest to their clients, many of whom are small businesses, and were ordered to repay borrowers.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• North Asia
• Credit/Special Situations
• Financing
• Japan
• Distressed
• Financial Services
• TPG Capital