Struggling supermarket operator Daiei Inc. announced Wednesday a fresh three-year restructuring program that features 520 billion yen in financial support from its three main creditor banks, up 100 billion yen from an earlier plan.
The program calls on UFJ Bank, Sumitomo Mitsui Banking Corp. and Fuji Bank to forgive their claims on 170 billion yen in outstanding loans to Daiei and exchange into stock their claims on 230 billion yen in loans to Daiei under a debt-for-equity swap deal.
The banks' claims on the loans will be swapped into 220 billion yen in preferred stock and 10 billion yen in common shares, Daiei said in a prepared statement.