Nichi-Iko to Receive Up to 98.5 B. Yen in Debt Relief
Toyama, Dec. 29 (Jiji Press)--Nichi-Iko Pharmaceutical Co. <4541>, a financially troubled Japanese generics maker, said it will receive up to 98.5 billion yen in debt relief from 15 creditor financial institutions under an out-of-court rehabilitation procedure called alternative dispute resolution.
Nichi-Iko's business turnaround scheme that includes the debt relief plan was approved at a creditors' meeting held on Wednesday, the company said the same day.
In another turnaround effort, the company will issue new shares worth 20 billion yen under a third-party allotment scheme.
Nichi-Iko President Yuichi Tamura will step down to take responsibility for his mismanagement. His successor will be picked at an extraordinary shareholders meeting planned to be held in February 2023.
The company is expected to be delisted from the Tokyo Stock Exchange around March or April next year.
[Copyright The Jiji Press, Ltd.]