Japanese banks agree to not call in some Toshiba loans early for now


Dire straits: Toshiba met its creditors after it made warnings for a massive writedown from its nuclear business.

TOKYO: Main Japanese lenders of Toshiba Corp have agreed to not call in some of their loans early for now even as recent downgrades of the troubled firm's credit ratings violate some provisions in debt agreements, two people with direct knowledge of the matter said.

Toshiba on Jan 10 requested the creditors, which included Japan's three mega banks, not to use provisions in the loan agreements to call in the loans early and to wait at least till the end of February for such a course of action.

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