Struggling Nakayama Steel Works Ltd. announced a business restructuring plan featuring a waiver of ¥60.2 billion in loans from some 40 creditors including Bank of Tokyo-Mitsubishi UFJ. Under the plan, Regional Economy Vitalization Corp. of Japan, a public-private fund, will also support the midsize Japanese steelmaker by purchasing some loans of the company.

Nakayama Steel President Hiromu Fujii will step down to take responsibility for the fate, and Shunichi Morita, former managing director of rival steelmaker Toyo Kohan Ltd., will replace Fujii in June to take charge of out-of-court rehabilitation procedures.