Nissan Diesel Bailout Near
January 31, 2000
Debt burdened Nissan Diesel Motor Co. is about to get some relief from its creditor banks, according to Reuters news service. A spokesman for Industrial Bank of Japan, one of Nissan Diesel's main creditors, told the Japanese press that announcement of a deal could come as early as this week.
Analysts say the bailout is necessary if the company is to survive. Nissan Motors recently announced a massive restructuring that didn't include the truck subsidiary. Renault owns 22.5% of Nissan Diesel -- acquired with a 36.8 stake in Nissan Motor -- but has said it won't put any more money into the truck maker until its debt is restructured. DaimlerChrysler has said it's interested in Nissan Diesel, but not with its current debt problems.
The truck builder reportedly has more than 500 billion yen in consolidated debt, about 10 times more than shareholder's equity. In it's peak year it sold some 160,000 trucks but sales last year were about half that.