Japan's Akebono Brake files for out-of-court turnaround scheme (updated)
30/01/2019 01:36
(Recasts with Akebono confirmation, adds share reaction)
TOKYO, Jan 30 (Reuters) - Japan's Akebono Brake Industry Co
Ltd 7238.T said on Wednesday it would turn around its
operations under an out-of-court scheme and present its revival
plan to lenders at a meeting next month, after its troubled U.S.
business hit its earnings.
The brake maker said in a statement that its filing for
assistance with a government-certified third-party body had been
accepted the previous day.
Akebono Brake is not facing financing troubles currently but
will prepare to seek assistance from its main lenders if needed,
the statement added.
The Nikkei, which first reported the news, also said that
Akebono was seeking a capital infusion from top
shareholder Toyota Motor Corp 7203.T .
A spokeswoman for Akebono Brake told Reuters that "the
content written in Nikkei is true."
The company's statement did not make mention of Toyota,
though.
A Toyota spokesman said he could not immediately comment.
Akebono's earnings took a beating after it failed to secure
orders for new models from U.S. automakers.
Shares of Akebono fell 19 percent on Wednesday morning
following the news. They had fallen more than 40 percent in
2018.
(Reporting by Aby Jose Koilparambil in Bengaluru, and by Chris
Gallagher, Kaori Kaneko and Chang-Ran Kim in Tokyo; Editing by
Shreejay Sinha)
((abyjose.koilparambil@thomsonreuters.com; +91 80 67496061;
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