Distressed Japan Hotelier Unizo Told Not to Sell Its Assets (1)

Hong Kong-based hedge fund firm Asia Research & Capital Management has asked distressed Japanese hotel operator Unizo Holdings Co. to provide confirmation that it won’t sell further assets, in an escalating dispute over the company’s finances.

The hedge fund also asked in a letter dated Feb. 24 and seen by Bloomberg News that Unizo confirm it will not be providing collateral to selected financiers for new or rollover financing.

ARCM said earlier this month that it had reason to consider that the hotel firm is likely insolvent and that it held 4.7 billion yen ($44.3 million) of Unizo bonds. Some ...