Former Sogo Co. Chairman Hiroo Mizushima will plead not guilty to accusations that he attempted to hide some 150 million yen in assets from creditors as the major department store operator appeared destined for failure, sources close to the case said Saturday.
According to the sources, Mizushima's lawyers will enter the plea at his first trial hearing, to be held at the Tokyo District Court on Wednesday.
The 89-year-old defendant will acknowledge that he withdrew money he had deposited, the sources said. However, his lawyers will maintain that Mizushima's personal guarantee of the loans extended to Sogo by the Industrial Bank of Japan, which form the basis of the seizure of the former chairman's assets, is invalid, they said.