Takefuji Corp., a Japanese consumer lender, will file for bankruptcy protection today because of rising refunds to borrowers for overcharged interest, according to a person with direct knowledge of the matter.
President Akira Kiyokawa and Executive Vice President Taketeru Takei will resign, said the person, who declined to be identified as the filing hasn’t been made. Director Junichi Yoshida, who is expected to take over as president, will likely announce the decision to file at a news conference today, the Nikkei newspaper reported.
Calls to the company’s headquarters before regular business hours weren’t answered. The Tokyo-based lender said yesterday it was considering “various measures” to revitalize its business.
Rivals Aiful Corp., Promise Co. and Acom Co. plunged in Tokyo trading yesterday on speculation they will face more claims for overcharged interest following law changes that took effect in June. The four lenders face losses of 503 billion yen ($5.97 billion) over the next two years, according to estimates by Nomura Holdings Inc.
Under the law that took effect June 18, consumer lenders are prohibited from extending loans that exceed a third of a borrower’s annual income, and interest charges must be capped at 20 percent.
Takefuji had 20.1 billion yen of cash and deposits as of June 30, compared with 40.4 billion yen as of March 31. Net income sank 32 percent to 6.3 billion yen in the three months ended June 30, from 9.3 billion yen a year earlier.
To contact the reporter on this story: Takako Taniguchi in Tokyo at ttaniguchi4@bloomberg.net
To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net.
http://jodnet.blogspot.com
President Akira Kiyokawa and Executive Vice President Taketeru Takei will resign, said the person, who declined to be identified as the filing hasn’t been made. Director Junichi Yoshida, who is expected to take over as president, will likely announce the decision to file at a news conference today, the Nikkei newspaper reported.
Calls to the company’s headquarters before regular business hours weren’t answered. The Tokyo-based lender said yesterday it was considering “various measures” to revitalize its business.
Rivals Aiful Corp., Promise Co. and Acom Co. plunged in Tokyo trading yesterday on speculation they will face more claims for overcharged interest following law changes that took effect in June. The four lenders face losses of 503 billion yen ($5.97 billion) over the next two years, according to estimates by Nomura Holdings Inc.
Under the law that took effect June 18, consumer lenders are prohibited from extending loans that exceed a third of a borrower’s annual income, and interest charges must be capped at 20 percent.
Takefuji had 20.1 billion yen of cash and deposits as of June 30, compared with 40.4 billion yen as of March 31. Net income sank 32 percent to 6.3 billion yen in the three months ended June 30, from 9.3 billion yen a year earlier.
To contact the reporter on this story: Takako Taniguchi in Tokyo at ttaniguchi4@bloomberg.net
To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net.
http://jodnet.blogspot.com
0 التعليقات
Post a Comment