Chiyoda to Receive Aid After Forecast Loss of over 200 B. Yen
Tokyo, May 7 (Jiji Press)--Embattled Japanese plant engineering firm Chiyoda Corp. <6366> is expected to receive financial aid from its top shareholder Mitsubishi Corp. <8058>, as well as MUFG Bank, it was learned on Tuesday.
The aid, potentially including loans and a capital increase through third-party allotment of preferred shares, may reach the scale of about 150 billion yen, informed sources said.
Chiyoda is set to accelerate efforts to improve its financial standing after losses from a liquefied natural gas plant project in Louisiana forced the company to revise down its consolidated net loss estimate for fiscal 2018, which ended in March, to over 200 billion yen.
The LNG plant losses came as the company faced difficulties securing workers for the project amid labor demand related to reconstruction after a hurricane.
On Tuesday, Chiyoda said that it expects to report a group net loss of 215 billion yen for fiscal 2018, worse than the previously forecast loss of 105 billion yen.
[Copyright The Jiji Press, Ltd.]