Pacific Holdings Inc. has filed for bankruptcy protection after a deal with Chinese investors collapsed when the investors discovered that the company had capital deficit of JPY 5.3 billion. The failure is ranked as the fourth largest in the 2008 fiscal year. With 163.6 billion yen in liabilities, the real estate company’s 37 billion yen’s worth of bonds will go into default. Although this bond default is the largest since 2001, analysts say the impact on the bond market will be minor. The company will transfer equity interests of Nippon Residential Investment Corp. and Nippon Commercial Investment Corp to a new sponsor.
The Tokyo Stock Exchange announced that Pacific Holdings shares will be placed on the liquidation post Wednesday, with the company to be delisted April 11.
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