Major audio equipment maker Kenwood Corp. said Friday it will file an application with the Ministry of Economy, Trade and Industry for treatment under the industrial revival law to qualify for a tax break METI gives to debt-ridden but potentially viable firms.
The application may be made by Nov. 30, it said. Kenwood envisions receiving a 25 billion yen bailout from its main lender, Asahi Bank, in the form of a debt-for-equity swap.
If the ministry approves the application, it would entitle the company to receive tax breaks related to the swap.
Kenwood said in a statement an approval by METI "would be very significant for our corporate rehabilitation because it would amount to having the government verify the feasibility of our reconstruction plan and since it would enable us to be exempt from the stock registration tax."