Debt-saddled supermarket chain Daiei Inc. and its three major creditor banks are putting the final touches on a 400 billion yen bailout package that involves swapping some 300 billion yen in loans for Daiei shares, a source at one of the creditor banks said Wednesday.
Through the debt-for-equity swaps, 300 billion yen in loans will be converted into preferred shares, bringing Daiei's loans from the three banks -- UFJ Holdings Inc., Sumitomo Mitsui Banking Corp. and Fuji Bank -- down to 1.3 trillion yen from the current 1.6 trillion yen, the source said.
UFJ Holdings officials briefed the Financial Services Agency on the bailout plan Tuesday, the source said, adding that Daiei and the creditor banks are expected to finalize the package by the end of the week.
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