Beleaguered Japanese retailer Daiei has disclosed details of a debt-for-equity swap plan agreed with its three key lenders.
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The move will see UFJ Bank, Sumitomo Mitsui Banking Corp. and Mizuho Corporate Bank gain voting rights when they swap ¥220bn (US$1.9bn) in their combined loans for Daiei’s preferred stock, reports the Kyodo News. The swap forms part of an ongoing restructuring programme Daiei agreed with creditor banks earlier this year.
Daiei outlined that ¥40bn worth of the total preferred stock issues would have voting rights and could be converted into common stock after three or four years.
A further ¥130bn worth would not immediately have voting rights but could be converted into common stock with voting rights after five to eight years. The stock, however, would receive higher dividends.
The remaining ¥50bn would have no voting rights at all but receive the highest dividends.
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By GlobalData
