It has been reported that Phoenix Capital could end up with approximately 200 billion yen in common shares, which carry voting rights unlike preferred stock, making it MMC's largest shareholder.
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| Even with all the current problems, Mitsubishi expects to return to profitability as early as the end of its business year in 2006. (Photo: Mitsubishi Motors North America) |
But MMC's other shareholders will need DaimlerChrysler's approval to move forward with its revitalization plan, and the announcement of additional shares will dilute DCX's position as a stakeholder. Whether this issue will stand in the way of the new plan, it is not known, but it wouldn't make business sense for DCX to interfere with MMC's objective as it could lose its entire investment if the Japanese automaker were to fail.
So when is MMC expected to return to profitability? Reportedly the automaker sees March 2006, the end of its business year, as its target date. Until then the losses will continue mostly due to its USD$10 billion in interest-bearing debt.