Nikkatsu files for bankruptcy

Major Japanese movie producer Nikkatsu Corp., saddled with debts of $ 464 million after a long decline in Japan’s movie industry, applied Thursday for court permission to reorganize its finances.

It was the first bankruptcy case involving a company listed on the Tokyo Stock Exchange’s first section since Sanko, a steamship company, went bankrupt in 1985, said Tokyo Shoko Research Ltd., a credit research agency.

Nikkatsu president Masao Wakamatsu said his company has applied for a court-mandated reorganization over eight years. If the court approves, the company will start negotiations with creditors.

Wakamatsu said Nikkatsu assets, estimated at $ 467 million, are still balanced with its debts. “Restructuring is totally possible,” he said.

Trading in Nikkatsu shares was suspended early Thursday following a report by a credit research company that a bank had not honored one of Nikkatsu’s checks.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety