Mitsubishi comes to Chiyoda's rescue again
Mitsubishi Corp and MUFG Bank announced a plan to rescue one of the world’s leading builders of liquefied natural gas plants Chiyoda Corp with a $1.4 billion lifeline.
Mitsubishi will provide the lifeline through a private placement of new preferred shares and loans.
Stocks impacted: Mitsubishi Corp (MSBHY), Chiyoda Corp (CHYCF)
In this effort, the two companies are betting on a turnaround fueled by greater LNG demand. As a reminder, Chiyoda faced problems after a hurricane hit its Cameron LNG project in Louisiana. Mitsubishi has bailed out Chiyoda twice already and has a 33.4 percent stake in the company. It will provide the lifeline through a private placement of new preferred shares and loans. MUFG Bank, which is a part of Mitsubishi UFJ Financial Group, will provide additional financing. The talks are ongoing and the final had not been made yet.
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