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Japan Payment Processor Collapse Hits Banks and Restaurants

Japan Payment Processor Collapse Hits Banks and Restaurants
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Japan Payment Processor Collapse Hits Banks and Restaurants The bankruptcy of Zentoshin Co., an Osaka-based credit card payment processor, threatens both the regional banks which funded it as well as the small and medium-sized restaurants that relied on its services. Zentoshin filed for bankruptcy with the Osaka District Court on July 6, according to Teikoku Databank, Japan’s largest private corporate credit research firm. The company had total liabilities of approximately ¥115.2 billion...

Japan Payment Processor Collapse Hits Banks and Restaurants The bankruptcy of Zentoshin Co., an Osaka-based credit card payment processor, threatens both the regional banks which funded it as well as the small and medium-sized restaurants that relied on its services. Zentoshin filed for bankruptcy with the Osaka District Court on July 6, according to Teikoku Databank, Japan’s largest private corporate credit research firm. The company had total liabilities of approximately ¥115.2 billion ($710 million), at the time of the filing, making it Japan’s largest corporate bankruptcy of the year. Five listed regional banks and banking groups, including Towa Bank Ltd. and The San ju San Financial Group Inc., have said they will take writedowns because of the failure. [Image text:] BYMSF Yakult 2 ushis Rakuten No.1. Rguten Moble
Zentoshin Co. (ORG) Osaka (LOCATION) Zentoshin (PERSON) the Osaka District Court (ORG) Teikoku Databank (ORG) Japan (LOCATION) Towa Bank Ltd. (ORG) The San ju San Financial Group Inc. (ORG)
Originally published by Bloomberg Markets Read original →