Aiful Group to Shed 2,000 Regular Jobs

Tokyo, Sept. 24 (Jiji Press)--Japanese consumer finance firm Aiful
Corp. <8515> said Thursday that it plans to reduce the number of its group's
regular employees by 2,000 as it now expects a huge loss for the year ending
in March 2010.

The job cut is part of a draft turnaround program the firm unveiled
after obtaining approval for the start of its business reconstruction under
an out-of-court process known as alternative dispute resolution from the
Japanese Association of Turnaround Professionals, the only
government-certified ADR mediator in Japan.
Aiful plans cut 1,300 of its regular jobs and 700 jobs at credit
card unit Life Co. through a voluntary retirement scheme. The combined
number represents about 40 pct of the Aiful group's total regular workforce.
Aiful will also reduce the number of the group's outlets by 30 pct
from the current 960.
Aiful said it now expects to incur a consolidated net loss of 311
billion yen in fiscal 2009, against the previously projected profit of 8,115
million yen, as it will newly set aside 240 billion yen as reserves to
return overcharged interest to customers.
As a result, the company will skip dividend payments for the year,
reversing its earlier plan to pay 10 yen per share, it said.
Aiful is slated to hold the first meeting of its creditors,
including Sumitomo Trust & Banking Co. <8403> and Aozora Bank <8304>, on
Oct. 8 to seek understanding for the turnaround program from the
institutions in order to receive their financial support.
Aiful said last week that it will ask the creditors for a
moratorium on repayments of the group's debts totaling 280 billion yen.
The company hopes to win the creditors' approval for the
rehabilitation program by the end of this year.