TOKYO (Reuters) - Mitsubishi Heavy Industries is arranging 220 billion yen ($2 billion) in financial support for its aircraft unit, which has struggled to deliver its first passenger plane, national broadcaster NHK reported on Tuesday.
Mitsubishi Heavy said in a statement that it was considering ways to resolve excess liabilities at the unit, but added it had not yet made any decisions.
Mitsubishi's regional jet program, Japan's first passenger plane since the 1960s, has been delayed by several years, with first customer ANA Holdings Inc now expecting the 90-seater plane in 2020 rather than in 2013 as originally planned.
According to NHK, Mitsubishi's aircraft unit will issue shares worth 170 billion yen as part of a debt-to-equity swap, while Mitsubishi Heavy will forgive 50 billion yen of debt.
The news comes on the heels of Canada's Bombardier Inc's decision to sue Mitsubishi's aircraft unit, saying former Bombardier employees passed on trade secrets to help Mitsubishi's jet project.
Also Read
Mitsubishi Heavy's shares were down 2.7 percent in afternoon trade, slightly underperforming the broader market.
($1 = 112.5300 yen)
(Reporting by Takashi Umekawa; Editing by Edwina Gibbs)
Disclaimer: No Business Standard Journalist was involved in creation of this content
