June 18, 2004
Mizuho Financial Group, Inc.
Possible Irrecoverability of Claims Owing to the Agreement Concluded with Kowa Real Estate Co., Ltd.
Mizuho Corporate Bank, Ltd. ("MHCB"), subsidiary of Mizuho Financial Group, Inc., concluded the agreement of financial assistance to the business restructuring of Kowa Real Estate Group today, with the related entities including Kowa Real Estate Co., Ltd. (the "Company"). Notice is hereby given that, as a result of this development, the possibility has arisen that certain claims, which will be left within the Company after completing the business restructuring, may be delayed or become irrecoverable. MHCB, which is the main financing bank of the Company, will continue to support Kowa Real Estate Group's efforts to implement the above business restructuring steadily.
1. Outline of the Company
|(1) Location||4-12-24, Nishi-Azabu, Minato-ku, Tokyo|
|(2) Representative||Mr. Yuji Watanabe|
|(3) Capital||JPY 1,800 million|
2. Details of Relevant Development
MHCB, the Company and its subsidiary Kowa Real Estate Sales Co., Ltd. concluded the agreement of financial assistance to the business restructuring of Kowa Real Estate Group today.
The Company will split a part of its business to Kowa Real Estate Sales Co., Ltd. at the end of this September.
3. Amount of claims which may be delayed or become irrecoverable
Mizuho Corporate Bank, Ltd.
Estimated loan amount of JPY 175,700 million as the remaining balance for the Company after the corporate split, out of total claims of JPY 218,363 million against the Company
4. Effect of this Development on Profits / Losses of Mizuho Financial Group, Inc.
Mizuho will recognize appropriate loss amounts for the uncovered portion of remaining claims against the Company in this fiscal year.
However, this development will have no effect on Mizuho's previously announced earnings estimates for this fiscal year.