Willcom To File For Bankruptcy Under Prepackaged Deal

Willcom Inc., the beleaguered PHS (personal hanyphone system) service provider, will file for bankruptcy protection with the Tokyo District Court on Thursday, initiating a pre-negotiated rebuilding processes that will tap taxpayer money, according to Nikkei. Willcom's rehabilitation efforts will be sponsored by Softbank Corp., one of the big three carriers and investment fund Advantage Partners LLP. The government-backed Enterprise Turnaround Initiative Corp. of Japan, or ETIC is expected to officially declare its support for Willcom as early as next week, making the PHS service provider the second firm to receive its help, after Japan Airlines Corp.