Chiyoda to Receive 180 B. Yen in Aid from Mitsubishi, MUFG Bank

Economy

Tokyo, May 9 (Jiji Press)--Troubled plant engineering firm Chiyoda Corp. <6366> said Thursday that it will receive a total of some 180 billion yen in financial assistance from its top shareholder, general trader Mitsubishi Corp. <8058>, and MUFG Bank.

On the same day, Chiyoda reported a consolidated net loss of 214,948 million yen for the year that ended in March, against the year-before profit of 6,445 million yen, due partly to swelling payroll costs over a U.S. liquefied natural gas plant project.

As a result, Chiyoda had a negative net worth of 59.1 billion yen at the end of March.

To help shore up Chiyoda's risk control system, Mitsubishi will send corporate adviser Kazushi Okawa, 62, to serve as chairman and chief executive officer from June. MUFG Bank will also dispatch an official to assume the post of chief financial officer.

Chiyoda President Masaji Santo, also hailing from Mitsubishi, will stay on, while Chairman Katsuo Nagasaka will step aside to the post of adviser.

[Copyright The Jiji Press, Ltd.]

Jiji Press