The Toho Bank Establishes a Corporate Recovery Fund (the Nikkei)

Oct 29th, 2004

The Toho Bank embarks on corporate recovery business for small and medium enterprises. The bank formed an alliance yesterday with the real estate and finance venture group, RISA Partners, for the recovery fund establishment. Both parties will collaborate on forming recovery plans such as restructuring of non-performing departments and reinforcement of marketing for concerned enterprises and aim for recovery within one to two years time. The Toho Bank will work on delinquent loan disposals through management restructuring as well.

RISA Partners will manage and operate the “Fukushima Revival Fund.” The investment capital is to be determined per initiative. The first investment project assists Fukushima’s hotels and inns industry.

RISA calculates the concerned enterprise value and determines the share price of stocks they purchase from the financial institutions based on the research. RISA supplies the capital from corporate investors who would benefit from the recovery plan and the yield of interests. Credit management will be operated by RISA’s group company, IR Loan Servicing (Chiyoda, Tokyo.)

The already-involved financial institutions would reduce their bad credits by selling them to the fund. The Toho Bank aims bring back the enterprises to healthy condition via recovery strategy and lead them to new accounts.

The Toho Bank established the corporate recovery team in April of 2003, and the team has doubled to 8 staffs today. They plan on vigorously assisting Fukushima prefecture’s small and medium enterprises such as “Okawaso,” an inn that IRCJ is also assisting in recovery.