Asia Pacific

Takefuji Corp., a consumer lender that came to symbolize practices that led to a crackdown against the industry, filed for bankruptcy protection with 433.61 billion yen ($5.15 billion) in outstanding debts, the first major failure in an industry suffering under the weight of stricter regulatory control, The Wall Street Journal reported. Takefuji's demise marks the end of an era in an industry that lent millions of yen to lower-income Japanese at sky-high interest rates.

It is likely to be at least two weeks before 150 workers at a north-west Tasmanian carpet factory know whether they still have jobs, ABC News reported. Tascot Templeton carpets at East Devonport went into voluntary administration last week. The Textile Clothing and Footwear Union says the Tasmanian Government has already given the company $4 million and it is time the Commonwealth provided some assistance. The Federal Member for Braddon Sid Sidebottom says there is already special assistance for textile workers but he will meet the union.

Consumer loan company Takefuji Corp. has decided to file for bankruptcy in the face of mounting claims by borrowers for reimbursement of excessive interest charges and thinning profit margins under tightened consumer loan regulations, sources said Monday, The Japan Times reported. Takefuji President Akira Kiyokawa denied media reports that it would seek court protection from creditors, telling reporters at his home in Yokohama that no decision had been made.

The gap between rent and house prices has narrowed to the lowest margin in nearly five years, according to an industry report Friday, which indicates the latest symptom of a freefalling property market, The Korea Times reported. According to Real Estate 114, a housing market research firm, the average ``jeonse’’ prices in Seoul are now measuring up to 39.77 percent of purchase prices as of September, the highest level since 41 percent in the fourth quarter of 2005.

Premier David Bartlett has expressed confidence in processes to approve loans under the $100 million Tasmanian Industry Support Scheme, The Mercury reported. The reassurance comes despite the likely loss of $1 million lent to Devonport carpet-maker Tascot Templeton in March and the loss of $2 million lent to Hobart-based educational software firm E-tech. Mr Bartlett said about $8.9 million had been loaned to eight companies under the support scheme, which was set up in November 2008 to help companies through the global financial crisis.

Japan’s ruling Democratic party plans to introduce a supplementary budget of up to $55bn to pay for further stimulus measures aimed at combating the impact of the strong yen and kick-starting the flagging economy, the Financial Times reported. The move highlights growing concerns that the Japanese economy is stagnating in the face of weakness in export markets and a strong yen and that more needs to be done in spite of the government’s September 15 currency market intervention.

Takefuji Corp. shares are poised to drop by their daily limit after a report Japan’s third-biggest consumer lender was preparing to seek bankruptcy protection in what would be the country’s second-biggest filing this year, Bloomberg reported. Takefuji, with 430 billion yen ($5.1 billion) in liabilities as of June 30, is in final talks to file for bankruptcy at the Tokyo District Court, the Nikkei newspaper said, without saying where it obtained the information.

New Zealanders are continuing to turn their backs on credit in an effort to pay off their debts, credit bureau Veda Advantage said, The National Business Review reported. "Consumer appetite for credit is down, people are moving to consolidate debt and mainstream banks are, in part, stepping into the void left by the finance companies via personal loans," managing director John Roberts said. Veda believes the most significant shift in people's attitudes to credit in the last 20 years is under way. There was a "radical change" in the lending market, Mr Roberts said.

Creditors of Hyundai Engineering & Construction Co. Friday launched the sale of their 34.88% stake in the construction firm, in a deal that could fetch them $3 billion and potentially set the stage for a fight between Hyundai Engineering's former sister companies, The Wall Street Journal reported. The creditors, in a public announcement published in a local newspaper, said the deadline for letters of interest in the stake will be on Oct. 1. The deadline for the formal bids is Nov. 12, and they seek to name a preferred bidder in December.