The banks include European, Japanese and American lenders who hold leases on virtually every plane that United flies, these people said.

With the Worldwide Plaza deal, Kumagai has helped bring in some of its Japanese lenders directly.

Japanese lenders have extended service hours for retail clients and branched out into new and more specialized investment banking services.

Late last year, a group of Japanese lenders took title to the 312 unsold units.

The bank is relatively large among Japanese regional lenders, and operates branches throughout the Kantō region.

In 1997, Bank of Tokyo-Mitsubishi was among the first Japanese lenders to start selling its defaulted mortgages on factories, stores and office buildings.

Moreover, according to Tishman, much of its construction financing is now also coming from Japanese lenders rather than American banks.

"Everyone knows this situation is coming sooner or later," said one banker at a major Japanese lender, referring to the need for another infusion of public money.

Japan's own financial problems have made Japanese lenders reluctant to compromise with lenders if it means adding losses to their already fragile balance sheets.

A consortium of nine Japanese lenders led by Fuji Bank, which holds a $250 million mortgage on the property, then began a foreclosure action.