News Archive : Japan Real Estate

Thursday, November 17, 2005

Fujita's AC Real Estate becomes year's biggest corporate failure

Fujita's AC Real Estate becomes year's biggest corporate failure

Thursday, November 17, 2005 at 05:00 JST
TOKYO - AC Real Estate Corp, which inherited the real estate division of the construction company Fujita Corp, has sought court protection from creditors with 352.6 billion yen in debts, company officials said Wednesday, making it the year's largest corporate failure.

AC Real Estate filed an application with the Tokyo District Court on Tuesday for protection under the Civil Rehabilitation Law, the officials said. The court has already ordered that the firm's assets be protected from creditors. AC Real Estate was formed in October 2002, when Fujita split itself into the current Fujita, which took over the mainstay construction operations, and AC Real Estate in a bid to alleviate the negative net worth that Fujita had incurred.