Saturday 10 September 2011
Japan
Massive cattle company goes broke
Agura Bokujo, a cattle company running some 370 farms throughout Japan, has filed for bankruptcy protection, Kyodo News Agency reported.
A company executive said Wednesday the leaking Fukushima Dai Ichi nuclear power plant prompted a rise in canceled contracts after radioactive cesium was detected in beef. The plant was gutted by the March 11 earthquake, of a magnitude of 9 on the Richter scale, and by the ensuing 33-foot tidal wave.
The Tokyo District Court ordered the protection of the Tochigi Prefecture-based firm's assets Tuesday under the Civil Rehabilitation Law. Agura Bokujo had 61.99 billion yen ($809 million) in debts as of the end of March.
A company executive said Wednesday the leaking Fukushima Dai Ichi nuclear power plant prompted a rise in canceled contracts after radioactive cesium was detected in beef. The plant was gutted by the March 11 earthquake, of a magnitude of 9 on the Richter scale, and by the ensuing 33-foot tidal wave.The Tokyo District Court ordered the protection of the Tochigi Prefecture-based firm's assets Tuesday under the Civil Rehabilitation Law. Agura Bokujo had 61.99 billion yen ($809 million) in debts as of the end of March.
Established in 1979, Agura Bokujo raises a combined 145,000 cattle at its farms, mostly franchisees. The company solicits investments in cattle breeding and buys calves from cattle owners. Some 70,000 people have invested with Agura Bokujo, which expects 400 billion yen ($5.2 billion) in costs to cover canceled contracts. Agura Bokujo said it intends to seek compensation from Tokyo Electric Power Company, adding it plans to rehabilitate its business and continue operating the hotels and restaurants it now runs.
Tochigi-based lawyer Hiroshi Suto organized a group of lawyers Monday to provide legal counsel for affected investors, many of whom are retirees. The lawyer said he has received inquiries from some 70 people whose investments ranged from 300,000 yen ($4,000) to ¥100 million ($1.3 million).
Source: newsroom - farmingnewsdaily.co.uk
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