UPDATE 1-Morimoto to get funding, emerge from bankruptcy -Nikkei

June 24 (Reuters) - Japanese condominium developer Morimoto Co Ltd plans to emerge from bankruptcy protection by wiping out its capital base and starting afresh with an equity injection from investment fund J-Will Partners Co, The Nikkei business daily reported.

The real estate firm faced ballooning inventories as the property market cooled. Amid liquidity problems, it filed for bankruptcy last November with roughly 160 billion yen ($1.68 billion) in liabilities, the report said without citing sources.

Although capitalized at slightly more than 5.7 billion yen, Morimoto will draw this down to zero in late July. J-Will Partners, which has prepared 1.2 billion yen in financing, will then inject 300 million yen in capital, the paper said.

The Development Bank of Japan is providing 3 billion yen in debtor-in-possession financing as well, the report added. ($1=95.16 Yen) (Reporting by Bijoy Koyitty in Bangalore; Editing by Gopakumar Warrier)