Akebono Brake to Accept 20 B. Yen from Turnaround Fund
Tokyo, July 18 (Jiji Press)--Struggling Japanese auto parts maker Akebono Brake Industry Co. <7238> said Thursday it will receive 20 billion yen in fresh capital from Japan Industrial Solutions Co., a public-private corporate turnaround fund.
To accelerate its business reconstruction, Akebono Brake will also accept an official from the fund as a board director and seek debt relief from its creditor banks.
The company plans to hold an extraordinary meeting of its shareholders on Sept. 27 to seek approval for these measures.
Akebono Brake will use the fresh funds for structural reform measures, such as a review of its production systems both at home and abroad.
After its performance deteriorated sharply due to a decrease in orders from U.S. automakers, Akebono Brake applied for an out-of-court business rehabilitation process known as alternative dispute resolution in January.
[Copyright The Jiji Press, Ltd.]