AC Real Estate Corp., set up to dispose of the nonperforming real estate holdings of ailing general contractor Fujita Corp., has filed for court protection from creditors with liabilities of some 352.6 billion yen, company officials said Wednesday, making it the year's largest corporate failure.

The request for application of the Civil Rehabilitation Law was filed Tuesday with the Tokyo District Court and has already been granted, they said.

Fujita ran into financial trouble after the collapse of the bubble economy. As part of its reconstruction efforts, it split its business into two entities in October 2002, with one handling construction and the other real estate.