Japanese manufacturer sounds out automaker on cash infusion as US business falters
TOKYO — Japan’s Akebono Brake Industry is seeking a capital infusion from top shareholder Toyota Motor and financial relief from bank lenders as it tries to turn operations around under a private workout scheme, Nikkei learned Tuesday.
The brake maker filed for an out-of-court turnaround process with a state-certified third-party body that day. It is expected to ask lenders for a moratorium on repaying loan principal and has approached Toyota about a possible capital increase.
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Akebono, whose troubled American operations have weighed on its earnings, is already in talks with certain partner banks and aims to compile a rehabilitation plan by June. Toyota, whose stake exceeded 11% as of September, is a chief customer.
Earnings took a beating at the Japanese brake manufacturer after it failed to secure orders for new models from U.S. automakers. In its April-September earnings report, Akebono cited “material doubts” about its ability to continue as a “going concern” due to troubles at North American operations.
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