Tobishima Corp., yet another general contractor struggling in Japan's troubled construction industry, is considering calling on its main creditor, Fuji Bank, for additional financial assistance, company sources said Saturday.
Tobishima, which had been considering integrating its business with Sato Kogyo Co., has apparently concluded that additional financial help is necessary if it is to rehabilitate on its own.
Tokyo-based Tobishima has about 90 billion yen worth of loans it has effectively taken over from affiliated companies under arrangements for debt repayment guarantees.
Tobishima, listed on the Tokyo Stock Exchange's First Section, may request that creditor banks of these loans give up partial claims on them, the sources said.
In 1997, the creditor banks agreed to waive claims on the 640 billion yen portion of Tobishima's 740 billion yen in debts, springing also from debt repayment guarantee arrangements for its affiliates.
In November 2001, Tobishima decided to abolish 400 jobs and embarked on a program to survive with annual sales reduced to around 230 billion yen, compared with some 300 billion yen in previous years.