May 25, 2011

LoneStar-Led Syndicate To Acquire All Tokyo Star Shares

US investment fund Lone Star and other creditors that provided funds to Japanese private equity firm Advantage Partners to buy Tokyo Star Bank have reached a broad agreement to gain full control of the embattled bank, according to Nikkei. With Advantage Partners unable to meet its repayment schedule, the Lone Star-led syndicate which also includes Shinsei Bank and France's Credit Agricole SA will exercise rights to repossess all the shares in Tokyo Star from its current owner. Advantage Partners acquired Tokyo Star in 2008 for about 250 billion yen, borrowing 170 billion yen from 20 creditors. But Tokyo Star Bank has been struggling with losses caused by putting aside more reserves for bad loans.

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