TOKYO, June 13 (Reuters) - Japanese consumer lender Aiful Corp said on Friday its creditors had agreed with the company’s plans to restructure 52.7 billion yen ($517.22 million) of the company’s total 162 billion yen in debt.
Aiful will repay the rest of the debt by taking out other loans and will buy back debt from creditors. Conditions on the buybacks were not disclosed, but the company said it will exchange outstanding debt for newly issued bonds that will pay 8 percent and mature in 2020.
Aiful, like other Japanese consumer lenders, was hit hard in 2006 when Japan imposed new regulations on the industry by cutting maximum interest rates and limiting the amount customers could borrow.
Aiful in 2009 had won the backing from its creditors to reschedule 272 billion yen ($2.7 billion) in debt through the a program known as “alternative dispute resolution”, or ADR.
Aiful then went through a drastic restructuring to cut costs and the Kyoto-based company was expected to provide new debt repayment plans to its creditors this year.
$1 = 101.87 Japanese yen Reporting by Junko Fujita; Editing by Matt Driskill