Japanese brokerage house files for bankruptcy

Maruso Securities, a medium-sized Japanese brokerage house, filed a petition on Tuesday with a Tokyo court for permission to start voluntary bankruptcy proceedings, Kyodo news agency reported.

The company made the move after failing to improve its " loss-ridden" financial situation, Kyodo said, quoting court officials.

"The Tokyo-based brokerage collapsed under the weight of 46.3 billion yen in liabilities," the agency said.

Maruso's unconsolidated pretax balance was in the red for the third consecutive year when it closed its books on 31st March 1997, with a loss of 1.48 billion yen.

The securities industry is to make sure that all securities, cash and other assets entrusted to Maruso by customers are returned through use of a compensation fund.

The company has a workforce of some 200 people, with five branch offices in the Kanto region surrounding the Tokyo metropolitan area, Kyodo said.

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