Nissan's Ghosn re-arrested, chances of imminent bail dashed

Japanese prosecutors re-arrested Nissan Motor Co Ltd’s (7201.T) ousted chairman Carlos Ghosn on Friday on fresh allegations of making Nissan shoulder $16.6 million in personal investment losses, dashing chances he would be released on bail imminently.

The move comes a day after a Tokyo court unexpectedly rejected prosecutors’ request to extend Ghosn’s detention, which raised the possibility that he could go free on bail as early as Friday.

The re-arrest means he could be detained for at least another 10 days in a Tokyo jail, where he has been confined since he was arrested last month on initial allegations of financial misconduct.

The Tokyo prosecutor said the new allegations were based on suspicions that around October 2008, Ghosn shifted personal trades to the automaker so that he could avoid paying for 1.85 billion yen ($16.6 million) in losses.

His lawyer, Motonari Otsuru, was not available for comment. The lawyer has previously declined to return calls regarding the Ghosn case.

The Tokyo court said in a statement that the lawyer for Ghosn’s former deputy Greg Kelly, who was arrested along with Ghosn, has requested his client’s release. Kelly’s detention extension was rejected along with Ghosn’s.

The dramatic turn of events on Friday came hours after Ghosn, through his lawyer and quoted by Japanese public broadcaster NHK, vowed to restore his good name in court and to hold a news conference after his release.

“Things as they stand are absolutely unacceptable,” he was quoted as saying. “I want to have my position heard and restore my honor in court.”

Television camera crews had gathered outside the Tokyo jail on Friday morning in hopes of catching sight of Ghosn being released.