Seller Information

Business Construction
Top line JPY 7 billion
Reason for sale Solving the excessive debts

Buyer Information

Business Construction/Real Estates Company
Top line JPY 25 billion
Purpose of acquisition Synergies and securing employees
Scheme Debt Forgiveness and Share Transfer

The target company was a construction company on a country-wide basis in Japan.
Financing from banks had become difficult due to the severe cash flow problem arising from accepting deficit construction orders

Because legal insolvency procedures such as civil rehabilitation, etc. forced burden on suppliers, the situation was such that the company had no choice but to transfer to a bankruptcy proceeding.
Through sponsor searching efforts for the company survival, because a company in Japan found the high-level skills of employees attractive, and the company decided to undertake capital increase
subject to some loan forgiveness by the banks.

The banks accepted some loan forgiveness, because they understood that the scheme provided better loan collection rate as compared with legal insolvency procedures.

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