Dairy products manufacturer Snow Brand Milk has announced that it is set to receive a financial aid package from its lenders.

The company’s three main lenders – UFJ Bank, Mizuho Corporate Bank and Norinchukin Bank – have all said that they will lend financial support for Snow Brand’s revival plans.

Norinchukin Bank will give Snow Brand a debt waiver of around ¥30bn (US$243.7m). UFJ Bank has agreed to accept preferred stock valued at ¥6bn through a debt-for-equity swap, while Mizuho Corporate Bank has agreed to accept preferred stock to the value of ¥5.5bn. Norinchukin has also agreed a debt-for-equity swap of ¥8.5bn.

The measures to revive the company will be taken during the fiscal second half starting in October, and are likely to increase debt during the current fiscal year to March 2003.