The liquidators of collapsed Toho Mutual Life Insurance Co. said Friday they have filed a lawsuit seeking 1 billion yen in damages from two former executives of the company.
The liquidators said the suit, filed at the Tokyo District Court, targets Seizo Ota, a former president, and Masanobu Tada, a former vice president.
The suit claims Ota and Tada damaged Toho Mutual by arranging loans totaling 12 billion yen to two real estate companies that had close ties with Ota.
The suit claims Ota approved the loans to profit himself.
The liquidators are accusing Tada of negligence in supervision.
The liquidators also disclosed the same day that they have received a total of 36.126 million yen from 10 out of 36 former executives asked to return retirement allowances totaling 750 million yen.
Toho Mutual went under in June 1999 after posting a capital deficit of 200 billion yen at the end of March that year.
Toho Mutual was liquidated in March after GE Capital Edison Life Insurance Co., a unit of GE Capital Services Corp. of the United States, took over Toho's insurance contracts.