By taking on additional leverage in an LBO, a PEfund could unleash value and make the capital structure of the company they take private more efficient.
Tokyo Star Bank emerged in 2001 from the bankruptcy in 1999 of Tokyo Sowa Bank through a partial buyout and capital injection by the U.S. PEfund Lonestar.
It looks as if it'll sell the unit to a private equity group made up of former executives, but there's a catch--the PEfund wants to leave the pension obligations behind.