30-B.-Yen Fund Eyed to Revitalize Small Firms in Japan
Tokyo, March 20 (Jiji Press)--New Horizon Capital Co. plans to establish a fund worth 20 billion to 30 billion yen as early as this summer to rebuild small businesses in Japan's countryside, Yasushi Ando, CEO of the Tokyo-based corporate turnaround firm, has said.
Through the fund, New Horizon will support financing and business growth of small companies hit by the fallouts of the novel coronavirus crisis, thereby helping shore up regional economies.
The fund, to be set up with entities including regional banks, will buy corporate debts, including those in arrears, from regional banks, shinkin banks and 'shinyo kumiai' credit associations, Ando told Jiji Press online.
It is expected to invest tens of millions of yen per case and support target companies' business recovery, such as through acquiring the management right, giving management advice, and conducting business splits or sales.
New Horizon has already started talks with some possible partner financial institutions, as well as with several potential target companies, including a banquet hall operator in the Kanto eastern region, Ando said.
[Copyright The Jiji Press, Ltd.]