Aiful To Enter ADR Turnaround Process

Aiful Corp., the nation's second biggest consumer lender, announced that it would ask its creditors to extend their repayment deadlines for loans worth about 300 billion yen under an alternative dispute resolution (ADR) deal, which would be mediated by a third party as part of a privately orchestrated workout plan. The ailing consumer finance company also plans to halve its workforce from 4,600 to 2,000 full-time positions on a consolidated basis in about a year. Japanese non-bank lenders continues to struggle with tighter regulations and shrinking demand.