TPG Capital in Talks with Takefuji

Private equity firm TPG Capital is in talks with Japan’s Takefuji about a possible injection of funds, two people with direct knowledge of the matter said, wrote Reuters. A Japanese court in October approved a rehabilitation plan for Takefuji that allowed A&P Financial to invest in it, but the Korean firm has so far failed to inject any money, writes Reuters according to sources.

(Reuters) – Private equity firm TPG Capital LP is in talks with Japan’s Takefuji about a possible injection of funds, two people with direct knowledge of the matter said.

A Japanese court in October approved a rehabilitation plan for Takefuji that allowed A&P Financial to invest in it, but the Korean firm has so far failed to inject any money, the sources said.

They spoke on condition of anonymity because the information is not public.

Takefuji could in theory face liquidation if it does not obtain new cash. A&P had planned to inject 28.2 billion yen ($363 million)..

TPG and the administrator for Takefuji TPG both declined to comment.

Takefuji said on Nov. 30 that it would move back the planned date for splitting the company into two by one month to Dec. 31, raising speculation that the restructuring plan was not progressing as scheduled.

Takefuji and other players in the industry, which offers unsecured loans to individuals and small business owners, are struggling to survive after Japanese courts in 2006 ruled that they had charged too much interest and had to repay borrowers.