Japanese leader potrebkreditovaniya Takefuji declared bankruptcy

The Japanese company Takefuji Corp., Holds leading positions in the national market for consumer credit, declared bankruptcy, as was not able to cover the debt of 433.6 billion yen (5.1 billion dollars). This amount the company owes the borrowers due to the fact that, according to court ruling in 2006, provided funds for an overvalued rate, reports Reuters referring to a message posted on Tuesday, the company.

It is known that the company president Akira Kiyokava and vice president of Tucker Takei, son of the founder Yasuo Takei, resigned. The document also notes that the Takefuji, which failed to enlist the support of any one of the largest Japanese bank, went to court with a request to Tokyo to protect it from creditors, citing including tightening lending rules and strong competition.

Bidding on the company's shares this week were not carried out because of an abundance of applications to sell them. Since the beginning of this year quotations Takefuji declined by 56%.

Competitors Takefuji, mostly smaller companies, are concerned that the bankruptcy of such a large company will force borrowers to doubt their good faith and take preventive legal action. However, according to Japanese analysts, bankruptcy Takefuji not pose a threat to the entire system, because it does not compromise the deposits of individual clients. "Income Takefuji largely accounted for bonds, mostly owned by foreign investors, including hedge funds, so bankruptcy is not able to have a sizeable impact on the entire financial system", - experts believe.

Takefuji, like many other representatives of the consumer finance sector, strive to make to stay afloat after the 2006 Japanese court ruled that the interest rates on loans that they offered were too high, and therefore they should return to its creditors unfairly collected from these funds.

Takefuji company was founded in 1966. Of the credit institution's local value for several decades, the company has become a market leader in consumer lending. In its best years, company had 530 offices throughout Japan and provided loans for 29% per annum. In 2005, the company's founder, Yasuo Takei, who died a year later, won second place in the ranking of the richest people in Japan, according to the magazine Forbes. Then, his fortune was estimated at 5.6 billion dollars. The crisis at the company began long before the global recession, namely in 2004, when Yasuo Takei was convicted of illegal installation of eavesdropping devices, which greatly undermined the reputation of the lender.