Distressed Japan Hotel Chain Unizo Sparks Hedge Fund Battle (2)

Distressed Japanese hotel operator Unizo Holdings Co. is back at the center of a tussle between financial market heavyweights, after a Hong Kong-based hedge fund flagged risks to creditors.

What’s happening:

Unizo has been attracting more scrutiny as its debt falls deeper into distress. The company was delisted in June after a management buyout financed by U.S. private equity firm Lone Star through an entity called Chitocea Investment.

Last week, Hong Kong-based Asia Research & Capital Management said in a letter sent to Unizo, Chitocea and Lone Star seen by Bloomberg News that it held 4.7 billion yen ($44.5 million) ...