Shokusan Jutaku Sogo Co., a major builder of custom-made houses that went bust earlier this month, said Monday the Tokyo District Court has decided to begin legal proceedings under the Civil Corporate Revival Law.
The company said the court ordered it to submit its rehabilitation plan by April 5. The firm filed for court protection from creditors Jan. 13 with unconsolidated liabilities of 13.5 billion yen.
Shokusan Jutaku, listed on the First Section of the Tokyo Stock Exchange, took the legal action under the fast-track legislation for corporate rehabilitation after abandoning efforts to fix itself.
Established in 1950, the company posted sales of 42 billion yen and a 1.7 billion yen net loss on a consolidated basis for the fiscal year that ended in March 2001.
The firm has 740 employees, 530 of whom are regular staff.
Kotobukiya gets OK
KUMAMOTO (Kyodo) The Kumamoto District Court has approved the start of rehabilitation proceedings for failed supermarket chain operator Kotobukiya Co. and its two affiliates under the civil corporate revival law, Kotobukiya officials said Monday.
The decision makes it possible for the Kumamoto-based company to launch full-fledge rehabilitation efforts, such as finding sponsor companies and closing unprofitable stores, the officials said.
Kotobukiya, the largest supermarket chain in Kyushu, Japan's southernmost main island, is required to submit a draft rehabilitation plan to the court by May 5, they said.
On Jan. 9, Kotobukiya revealed a downsizing plan that calls for laying off all the 2,200 employees on regular payrolls with an eye to re-hiring those seeking jobs under different contractual terms.
The plan also calls for shutting 44 of the supermarket's 134 retail outlets.
Kotobukiya filed for court protection from creditors on Dec. 19 with total group liabilities of 295.9 billion yen under the law.