Troubled construction firm Kumagai Gumi Co. received the approval of its shareholders during an extraordinary meeting Wednesday for the firm's plan to reduce its capital by 65 billion yen to 17 billion yen on March 1.
The move is part of a major restructuring plan it agreed to late last month with its 15 creditor banks, including Sumitomo Bank. Under the plan, the banks agreed to forgive 430 billion yen in loans.
To help bolster Kumagai Gumi's capital base after its planned capital reduction, some banks also agreed to purchase 20 billion yen worth of new shares.
"I feel very sorry that we had to ask you for something so burdensome . . . given the extended decline in our share price and no dividend payment," President Kazutoshi Torikai told the shareholders' meeting.
The company also won approval for its plan to cut the number of board members to 13 from 22.