Daio Paper moved to watch list on Tokyo Stock Exchange, at risk of delisting, after failing to release fiscal H1 results following loan scandal involving its former chairman, expects to have report ready by Dec. 14
November 11, 2011
– Handicapped by a scandal involving loans to a former company chairman, Daio Paper Corp. was moved to a watch list on the Tokyo Stock Exchange, reported The Mainichi Daily News on Nov. 11.
The move was made after the company announced earlier in the day that it would be unable to report its fiscal 2011 first-half’s results as previously scheduled for Nov. 14, the TSE said on Thursday.
The watch list is a reminder to investors that the company could be delisted, said the Tokyo bourse, noting that Daio Paper will remain on the watch list until a decision is made as to whether or not to delist it, the Daily News reported.
Daio Paper expects that by Dec. 14 it will be ready to release an earnings report for the April-through-September period.
The company said that it had been unable to determine the effect of the questionable loans on its earnings for the second quarter through September, and that it also needs to modify its financial statement for the fiscal year 2010 ending March 31, reported the Daily News.
This made it difficult for the company to be ready to submit its results to the Kanto Local Finance Bureau by Monday’s deadline, Daio Paper said.
Daio Paper and third-party officials are investigating the more than 10 billion yen (US$129.5 million) in dubious loans extended by some of its divisions to its former chairman Mototaka Ikawa, who has repaid 4.75 billion yen, the Daily News reported.
So far, the investigation has uncovered that loans totaling 10.68 billion were made in 26 installments from seven subsidiaries during the period from May 12, 2010 to Sept. 6, 2011.
Daio Paper makes tissue and hygiene products and is known for its Elleair-brand tissues, reported the Daily News.
The primary source of this article is The Mainichi Daily News, Tokyo, Japan, on Nov. 11, 2011.