Mexican Media Brands
Akebono Lands $185 Million Bailout
Ailing Akebono Brake Industry Co. says it has secured 20 billion yen ($185 million) from turnaround specialist Japan Industrial Solutions Co. in exchange for new stock shares.
#economics
Share
Ailling Akebono Brake Industry Co. says it has secured 20 billion yen ($185 million) from turnaround specialist Japan Industrial Solutions Co. in exchange for new stock shares.
The bailout follows an out-of-court turnaround plan filed by the Japanese supplier In January. Akebono had struggled to keep up with orders from General Motors Co. following the Great Recession, then failed to win new-product contracts from GM.
As part of the bailout, Japan Industrial will receive a seat on Akebono’s board of directors. Shareholders will vote on the plan on Sept. 27.
Akebono also is expected to scale back international expansion plans and seek 50 billion yen ($72 million) in debt forgiveness from its lenders, according to The Nikkei.
The company says it will book a special loss of 7.8 billion yen ($72 million) in April-June to cover quality-related issues.
RELATED CONTENT
-
On Headlights, Tesla's Autopilot, VW's Electric Activities and More
Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
Global Car Market to Shrink for 2-3 Years
Global sales of light vehicles will decline year on year through at least 2021, predicts LMC Automotive at its annual outlook conference outside Detroit, Mich.