Financially troubled Mitsui Construction Co. decided at an extraordinary board meeting Tuesday to issue 20.4 billion yen worth of new shares late this month to 11 creditor financial institutions and its mercantile arm, Sanken Corp., the company announced.
The third-party allocation is part of a debt-waiver scheme in which the company has asked 13 related entities, including major creditor Sakura Bank, to forgive a total of 163 billion yen in claims on their outstanding loans to Mitsui Construction.
The 20.4 billion yen paid for the new shares will be subtracted from the requested debt-waiver tally.