Ailing Mitsubishi Motors gets $2.63 bn bailout

Mitsubishi Motors said it had secured $2.63 bn in financial aid from Mitsubishi group, its second rescue package in 8 months.

Ailing auto maker Mitsubishi Motors Corp (MMC) said on Friday it had secured financial aid worth 270 billion yen ($2.63 billion) from the Mitsubishi group, its second rescue package in eight months.

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Mitsubishi Tokyo Financial Group Inc (MTFG), trading house Mitsubishi Corp and machinery maker Mitsubishi Heavy Industries Ltd will buy a combined 270 billion yen in preferred and common shares to be issued by MMC.

That includes 50 billion yen of MMC's debt that the Bank of Tokyo-Mitsubishi, the core bank of MTFG, will convert into equity.

After receiving a $4.8 billion bailout from the same Mitsubishi group firms, investment funds and others last year, MMC is still in dire need of cash to pay for restructuring steps and the development of new cars.