Akebono Brake to Receive $185 Million for Turnaround, Shares Climb

Japan’s Akebono Brake Industry Co Ltd said on Thursday it will receive about $185 million from a corporate turnaround fund to help restructure its money-losing business, sending its shares sharply higher, Reuters reported. The supplier of brakes to General Motors Co, which makes up about a quarter of Akebono’s sales, and other automakers said it would issue new shares worth 20 billion yen ($185 million) to Japan Industrial Solutions. Shares of Akebono soared as much as 43% to 166 yen on the Tokyo Stock Exchange, before closing up 8%. The company also said in a statement that it would book a special loss of 7.8 billion yen ($72 million) in the April-June quarter for quality-related issues. As part of the turnaround plan, the company said it is planning to downsize its overseas ambitions and ask lenders to substantially forgive its debt. Read more