Golf course firm in debt crunch

Goldman Sachs Group's golf course operator Nitto Kogyo Co. and 11 affiliates, burdened with 427 billion yen ($3.7 billion) of debt, are seeking protection from creditors for the second time in five years.

Nitto Kogyo, which Goldman bought in December 2001, filed for protection from creditors in Toyo District Court.

The company, which owns 30 golf courses in Japan with 71,985 members plus the Makaha Valley Country Club on O'ahu, wants time to restructure its debts and restore its business.

Goldman and Nitto will put together a rehabilitation plan within six months. The golf operator will be liquidated if creditors holding 50 percent of its debt and more than half the members exercising voting rights disagree with the plan.

Goldman bought 70 percent of the company's debts from creditors, including Asahi Bank Ltd., Aozora Bank Ltd. and Sumitomo Mitsui Banking Corp.