Lender Lopro files for protection

OSAKA (Kyodo) Lopro Corp. filed for bankruptcy protection Monday under the civil rehabilitation law with the Tokyo District Court and was granted protection from creditors, the major nonbank lender said.

The company went under with liabilities of around ¥21.88 billion after its business worsened when it was forced to reimburse borrowers who had been charged exorbitant interest. The reimbursements were in line with a 2006 law change that clamped down on moneylenders.

The payback also forced the firm to increase loan-loss reserves, lessening the likelihood that it could rehabilitate itself.

The Tokyo Stock Exchange and the Osaka Securities Exchange said they will delist Lopro from their first sections Dec. 3.

The company is expected to seek a sponsor for rehabilitation under a court-designated lawyer.

Lopro said President Masahiro Maeda stepped down Monday to take responsibility for the failure, and its board of directors approved the appointment of Managing Director Takashi Ieda as the new president.