* Takefuji chose A&P Financial as investor in April
* A&P Financial not yet invested money into Takefuji
* TPG was one of original bidders for Takefuji
By Junko Fujita
TOKYO, Dec 12 Private equity firm TPG
Capital LP is in talks with failed Japanese consumer
lender Takefuji about a possible injection of funds as the
current investor in Takefuji has not made payments for its
acquisition, two people with direct knowledge of the matter
A Japanese court approved a rehabilitation plan for Takefuji
in October that allowed South Korean consumer lender A&P
Financial to invest in it, but the Korean firm has been
struggling to raise money, the sources said, asking not to be
identified because the information is not public.
A&P had planned to inject 28.2 billion yen ($363 million).
. Takefuji could in theory face liquidation if it
cannot obtain the new cash.
TPG and the administrator for Takefuji both declined to
Takefuji said on Nov. 30 it would move back the planned date
for splitting the company into two by one month to Dec. 31,
raising speculation that the restructuring plan was not
progressing as scheduled.
Takefuji said in July it planned to divide itself into two
units, one continuing its lending business with A&P Financial
and the other focused on repaying debt to creditors.
Takefuji and other players in the industry, which offers
unsecured loans to individuals and small business owners, are
struggling to survive after Japanese courts ruled in 2006 that
they had charged too much interest and had to repay borrowers.
TPG was one of the original bidders for Takefuji after it
failed in September last year.
The amount of debt at Takefuji has ballooned to 1.5 trillion
yen since then as it faced claims from customers for repayment
of overcharged interest.