Takefuji Corp., the bankrupt consumer lending giant, has postponed a deadline for the submission of bids from potential investors by about 10 days from Thursday, sources said.
Takefuji found potential bidders need more time to complete due diligence, the process for determining the value of assets, the sources said Thursday.
The Tokyo-based lender, whose rehabilitation is being overseen by court-appointed lawyers, including Eiichi Obata, has selected five potential bidders and plans to choose the winner by month's end. Takefuji's September bankruptcy stemmed from a government crackdown that let borrowers claim refunds of overcharged interest, capped rates at 20 percent and required that loans be based on the income.
The company overcharged clients a total of ¥2.4 trillion in interest as of Oct. 31, more than eight times the ¥273 billion it set aside for repayment claims as of last March, according to a court document obtained by Bloomberg News.