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May 19, 2000, Friday

HEADLINE: Court Permits Nagasakiya to Start Rehabilitation

DATELINE: Tokyo, May 19

Tokyo District Court has approved the start of rehabilitation procedures for Nagasakiya Co., a failed midsize supermarket chain, the company said Friday.

Kunimoto Fukuda, director-consultant at food retailer Eco's Co., is to take charge of rebuilding Nagasakiya as an official receiver and the Cerberus Group, a U.S. private equity fund, will offer financial support.

Nagasakiya will submit a reconstruction plan by May 2001 with the aim of obtaining approval by July.

Fukuda said he is aiming to put Nagasakiya back on its feet as early as possible, and hopes that Cerberus' expertise in corporate reconstruction will help bring out Nagasakiya's strengths, such as its extensive branch network.