TOKYO (Reuters) – Japan’s Akebono Brake Industry Co Ltd is seeking a capital infusion from top shareholder Toyota Motor Corp and a moratorium on debt repayment as part of a revival plan, sending its shares tumbling by a quarter on Wednesday.
Akebono, whose troubled U.S. business has hit its earnings, said it was confident its operations would be turned around under an out-of-court scheme and that it will present a revival plan to lenders at a meeting next month.
The Nikkei first reported Akebono’s move to seek capital from Toyota and a debt moratorium. A spokeswoman for Akebono told Reuters that “the content written in Nikkei is true.”
Akebono’s latest financial woes date back to around 2014, when the company was struggling to fill a surge in orders from customers in the United States, where vehicle sales were climbing to record highs.
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