Nissan Seeks Bank Support amid Ghosn Scandal

Economy

Tokyo, Dec. 26 (Jiji Press)--Nissan Motor Co. <7201> has asked its creditor banks for financial support in the event of funding difficulties after the arrest and indictment of former Chairman Carlos Ghosn for alleged financial misconduct, informed sources said Wednesday.

The move came ahead of the redemption of Nissan corporate bonds totaling 100 billion yen in March. Its main creditor Mizuho Bank is expected to meet the request, the sources said.

Nissan is not necessarily facing large financial risks as its cash and deposit reserves totaled some 1.1 trillion yen at the end of September.

Stemming from the Ghosn scandal, Nissan, as a company, was also indicted for nondisclosure of part of his executive compensation.

With its internal control system now in question, there are concerns that institutional investors may stay away from the automaker.

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Jiji Press