Japan Digital Contents Trust license revoked

Investment fund financed production companies, films

HONG KONG -- Japan's Financial Services Agency said Tuesday that it had revoked the license of Japan Digital Contents Trust.

The media investment fund had backed independent distribution and production companies including Movie Eye, Xanadeux and Klockworx. It had financed films including the hit "Hula Girls" and flops including "Bugmaster," "Halfway" and "Last Game.

The FSA said that its had stripped the company of its license for two reasons; failing to maintain assets above the required Y100 million ($1.1 million) required for its listing on the Mothers section of the stock market; and for mismanagement of the funds collected from investors.

In losses for several years, the fund announced in December that it was to be taken over by and receive a $3.8 million capital injection from JCM Asset management and its Singapore offshoot Gorgeous Grace.

In June this year the FSA accused the fund's former president Mitsuru Hirata of misappropriating $3.1 million. Hirata was dismissed the same month.

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