MHI's debt-ridden aircraft unit files for liquidation in Tokyo court

Japan's Mitsubishi Heavy Industries says its debt-laden aircraft subsidiary has filed for liquidation with the Tokyo District Court. The move follows the company last year pulling out of a failed government-backed project to develop a passenger jet.

The unit holds debt of about 640 billion yen, or 4 billion dollars. MHI officials say the debt will be reported as an extraordinary loss and have little impact on its bottom line.

MHI started the project to build Japan's first passenger jet in 2008. But it was plagued by repeated failures to meet delivery deadlines due to design changes. The government pumped more than 310 million dollars into the project.