Norinchukin Bank is discussing a capital injection in JA Mitsui Leasing Ltd., after the joint venture said its estimated loss from debt linked to First Brands Group has ballooned to almost $1 billion.
JA Mitsui will book a ¥150.5 billion ($968 million) allowance on the collapsed US auto-parts supplier, the company said in a statement on Tuesday. Its full-year net loss is estimated to be ¥115.7 billion, up from an earlier projection of ¥600 million.
Tokyo-based JA Mitsui said it is in talks with five banks, including Norinchukin, for subordinated syndicated loans. Norinchukin said it plans to provide necessary support in coordination with its other joint venture partner Mitsui & Co. The agricultural bank said it is discussing the JV's capital reinforcement and business management improvement with the lenders.
"Our group currently has sufficient liquidity to meet its funding needs," JA Mitsui said. The allowance for doubtful accounts swelled from the ¥47.5 billion it booked in NovemberBloomberg Terminal.
