Three of Japan's largest banking institutions have expressed their intention to provide financial support to Lapidus. Although the specific terms and amounts are yet undisclosed, the move is likely to improve Lapidus’ struggling financial position. More details about the deal are expected to be announced soon.
Japan's banking sector is one of the pillars of its economy, and news about it attracts substantial attention. In recent years, there's been a growing trend of mega-banks helping struggling companies to maintain economic stability. However, there are concerns about potential moral hazards or the promotion of "zombie companies", firms that are kept alive only through financial support.
While similar in the US and EU, rescue packages are typically tied to reforms, and situations are closely monitored by regulators. The structure of the financial aid varies with cases, ranging from changing management to restructuring companies.