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Akebono Brake secures $180m bailout from rescue fund

Auto supplier also seeks debt waivers from lenders

Akebono Brake emphasized its U.S. operations, even featuring in a commercial highlighting contributors to the American economy. (Photo by Masayuki Shikata)

TOKYO -- Troubled Japanese automotive supplier Akebono Brake Industry will accept a 20 billion yen ($185 million) infusion from a domestic rescue fund and ask lenders to waive nearly half of its loans, carving out the financial breathing room to focus on a turnaround plan.

The company said Thursday that it will issue preferred shares to rescue fund Japan Industrial Solutions in exchange for the infusion, with the plan set for a shareholder vote in late September. The brake supplier will meet with creditors on Monday and on Sept. 18 to negotiate waivers on about 50 billion yen in loans, Nikkei has learned.

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