The Tokyo District Court began court-led bankruptcy procedures Thursday for condominium developer Huser Ltd., court officials said.
Huser is embroiled in the quake-resistance data falsification scandal that broke last November.
The bankruptcy proceedings come after about 300 owners of units in nine Huser condominium buildings with substandard earthquake resistance asked the court last month to take the step to protect Huser's assets to compensate them.
The request for a bankruptcy declaration is aimed at preventing assets of the Tokyo-based company from dissipating, and allowing them to be distributed equally among creditors, the buyers' group said earlier.
The bankruptcy proceedings will suspend a damages suit Huser filed last month with the same court. The condo developer is demanding 13.9 billion yen in damages from 18 local governments, accusing them of failing to properly check quake-proofing data when screening its projects.
Huser developed about 20 of 97 buildings cited so far by the Land, Infrastructure and Transport Ministry as being designed with substandard data compiled by disgraced architect Hidetsugu Aneha.
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