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Akebono Lands $185 Million Bailout
Ailing Akebono Brake Industry Co. says it has secured 20 billion yen ($185 million) from turnaround specialist Japan Industrial Solutions Co. in exchange for new stock shares.
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Ailling Akebono Brake Industry Co. says it has secured 20 billion yen ($185 million) from turnaround specialist Japan Industrial Solutions Co. in exchange for new stock shares.
The bailout follows an out-of-court turnaround plan filed by the Japanese supplier In January. Akebono had struggled to keep up with orders from General Motors Co. following the Great Recession, then failed to win new-product contracts from GM.
As part of the bailout, Japan Industrial will receive a seat on Akebono’s board of directors. Shareholders will vote on the plan on Sept. 27.
Akebono also is expected to scale back international expansion plans and seek 50 billion yen ($72 million) in debt forgiveness from its lenders, according to The Nikkei.
The company says it will book a special loss of 7.8 billion yen ($72 million) in April-June to cover quality-related issues.
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