ID :
21609
Sun, 09/28/2008 - 00:13
Auther :
Shortlink :
https://oananews.org//node/21609
The shortlink copeid
Real estate developer C's Create files for bankruptcy protection
TOKYO, Sept. 26 Kyodo - Real estate developer C's Create Co. said Friday it has filed for bankruptcy protection with the Tokyo District Court under the Civil Rehabilitation Law, marking the 10th bankruptcy of a listed real estate firm this year.
The Tokyo-based firm, listed on the First Section of the Tokyo Stock Exchange,
said it has 11.44 billion yen in liabilities. It represented the 12th largest
amount of debt left by a failed listed firm this year, according to private
credit research agency Teikoku Databank.
C's Create said a surge in property and construction prices led to lackluster
sales of its suburban condominiums, leaving the company with a huge stockpile
of 237 unsold condominiums by the end of this March.
Although the firm built its reputation by promoting eco-friendly condominiums,
its dramatic growth since its establishment in 1999 came to an abrupt halt
after it fell into the red with a group net loss of 862 billion yen for fiscal
2007.
It also faced increased difficulties in procuring funds from this April due to
a global credit squeeze sparked by the U.S. subprime mortgage crisis, the
company said.
''A tightening of loan regulations by financial institutions due to the
subprime loans problem caused a rapid financing crunch,'' C's Create Chief
Executive Officer Hisashi Yuki said at a press conference in Tokyo.
C's Create was already placed under a supervisory post at the Tokyo bourse
after it failed to submit its earnings report for the April to June quarter.
Following the company's announcement after the market's close, the TSE said it
will designate C's Create as a liquidation issue from Saturday to Oct. 26 and
delist it on Oct. 27. C's Create ended Friday at 1,310 yen, up 5 yen from the
previous day.
The firm's fall comes amid a string of corporate failures plaguing the nation's
struggling real estate sector. In mid-August, Hiroshima-based real estate
company Urban Corp. filed for court protection in Japan's largest bankruptcy so
far this year with liabilities totaling 255.83 billion yen.
The Tokyo-based firm, listed on the First Section of the Tokyo Stock Exchange,
said it has 11.44 billion yen in liabilities. It represented the 12th largest
amount of debt left by a failed listed firm this year, according to private
credit research agency Teikoku Databank.
C's Create said a surge in property and construction prices led to lackluster
sales of its suburban condominiums, leaving the company with a huge stockpile
of 237 unsold condominiums by the end of this March.
Although the firm built its reputation by promoting eco-friendly condominiums,
its dramatic growth since its establishment in 1999 came to an abrupt halt
after it fell into the red with a group net loss of 862 billion yen for fiscal
2007.
It also faced increased difficulties in procuring funds from this April due to
a global credit squeeze sparked by the U.S. subprime mortgage crisis, the
company said.
''A tightening of loan regulations by financial institutions due to the
subprime loans problem caused a rapid financing crunch,'' C's Create Chief
Executive Officer Hisashi Yuki said at a press conference in Tokyo.
C's Create was already placed under a supervisory post at the Tokyo bourse
after it failed to submit its earnings report for the April to June quarter.
Following the company's announcement after the market's close, the TSE said it
will designate C's Create as a liquidation issue from Saturday to Oct. 26 and
delist it on Oct. 27. C's Create ended Friday at 1,310 yen, up 5 yen from the
previous day.
The firm's fall comes amid a string of corporate failures plaguing the nation's
struggling real estate sector. In mid-August, Hiroshima-based real estate
company Urban Corp. filed for court protection in Japan's largest bankruptcy so
far this year with liabilities totaling 255.83 billion yen.
