Dia Kensetsu Co., Japan's second-largest condominium builder, on Tuesday revised its projected group net loss for fiscal 2000 to 500 million yen from 4.6 billion yen, following a debt-waiver deal with a U.S. investment fund.
The revision was possible as investment fund Cerberus Asia Capital Management LLC agreed to waive a 9 billion yen portion of Dia's liabilities, the company said.
The scope of the upward revision was limited to an improvement of 4 billion yen, as Dia will have to put up loan-loss reserves on its outstanding debt to its affiliates by using the rest of the gains springing from the debt-waiver, it said.
Cerberus earlier bought Dia's 23 billion yen loan from a unit of the failed Nippon Credit Bank that was nationalized in 1998. NCB was sold Sept. 1 to an investment group led by Softbank Corp.
Cerberus is a major investment group specializing in promising companies seeking to rehabilitate their finances.