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Willcom to file for bankruptcy protection
17 February 2010
Willcom, a Japanese operator owned by Carlyle and Kyocera is expected to file for bankruptcy protection but is seeking investment from rival operator Softbank
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Japanese wireless carrier Willcom is likely to file for bankruptcy protection with the Tokyo district court this week. Japan’s state-backed Enterprise Turnaround Initiative may provide financial support for the phone company after it applies for court protection.
Willcom, which has total loans of $1.9 billion, owed its biggest creditors, Mitsubishi UFJ Financial Group and Mizuho Financial, $194 million each as of March 31 2009.
The company is planning to seek investment from Japan’s third-largest mobile-phone company, Softbank, and a Japanese investment fund, to restore its businesses.
Willcom uses PHS technology — Personal Handyphone System — a mobile generation which was one popular in both Japan and China but has largely disappeared from existence thanks to cheaper 2G and 3G services.
Willcom’s rivals include Japan’s largest wireless operator, NTT DoCoMo, KDDI and Softbank. In 2009, Softbank added 1.7 million users, while NTT DoCoMo increased its number of subscribers by 1.3 million.
In 2004, Carlyle and Kyocera purchased a combined 90% stake in Willcom from KDDI for $2.43 billion. KDDI still owns 10%. GTB