Bankruptcy
On 4 November 1997 the bankruptcy of Sanyō Securities caused the Central Gunma Trust Fund (now Gunma Trust Fund) to default on about ¥1 billion yen of unsecured loans. As a result, the unsecured call market descended into chaos, with every funding facility ordering an emergency decrease in its credit line. The cash flow in the call market became difficult for Takugin. With its share price at 59 yen, Takugin was on the verge of breaking the 50 yen barrier.
Already without the possibility of getting capital from the call market, Takugin, having been deserted by the finance ministry announced that its efforts to find financing would end the following week. On 17 November, an emergency meeting of the board of directors was organized in the Palace Hotel, Tokyo, where the decision was finally taken to abandon hope of continuing business.
Read more about this topic: Hokkaido Takushoku Bank
Famous quotes containing the word bankruptcy:
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