The Daily Yomiuri (Tokyo)

 

September 21, 2000, Thursday

 

SECTION: Pg. 16

 

LENGTH: 184 words

 

HEADLINE: Phoenix Resort seeking aid in restructuring

 

BYLINE: Yomiuri

 

DATELINE: MIYAZAKI

 

BODY:

 

Phoenix Resort, Ltd., the third-sector operator of the deficit-ridden Seagaia resort complex in Miyazaki, has given up an option to reconstruct itself independently and has begun negotiations with domestic and foreign companies to seek management transfers and financial assistance, it was learned Tuesday.

The resort complex has accumulated debts of about 121.8 billion yen. 

If the negotiations are concluded successfully, Phoenix Resort, which is funded by both the public and private sectors, likely will include details of them in a rehabilitation plan to be submitted to its creditors, including Dai-Ichi Kangyo Bank. Phoenix Resort, whose president is Eitaro Kimoto, will then start negotiations with creditors concerning debt forgiveness.

Seagaia reportedly is aiming to get into the black in its consolidated account settlement in the business term ending in March 2001.

However, even if it manages to do so, the resort complex is likely to face a shortage of operating funds from fiscal 2002. The operator is therefore looking for sponsors as the only way to avoid bankruptcy. 

 

LOAD-DATE: September 20, 2000