Mita Co. Seeks Court Protection
TOKYO (AP) _ Mita Industrial Co., a Japanese maker of copy machines, sought court protection Monday from creditors to whom it owes more than a billion dollars, company officials said.
An official of the Osaka-based company said it filed with the Osaka District Court to restructure under Japan’s corporate rehabilitation law.
The official, who spoke on condition of anonymity, said the debts at Mita Industrial and subsidiaries totaled 205 billion yen, or $1.4 billion.
The company’s earnings have been sharply hurt by the weakening yen in recent years. Also, the company piled up debt as it held onto a bloated workforce of 3,600 despite falling sales, the official said.
Mita Industrial, an unlisted company founded in 1948, had sales of 100 billion yen ($680 million) in the year ended November 1997.