Jan 30 — On January 29, 2018, our consolidated subsidiary, Ricoh India Limited (Headquarters: New Delhi, Listed on Bombay Stock Exchange – referred to as Ricoh India from here), filed an application for initiating corporate insolvency resolution process with the National Company Law Tribunal pursuant to Section 10 of the Insolvency and Bankruptcy Code, 2016 of India, based on its board decision to do so. Ricoh India announced the filing on the same day.
Ricoh India has been trying to effectuate management reforms, cost reductions and other measures for the purpose of rehabilitating its business; however, its business performance has not improved and deficit has continued. Additionally, Ricoh India’s relationship with its major vendor has deteriorated, and it resulted in non-fulfilment of contracts by the vendor and failure to collect receivables from business partners. Ricoh India announced that, since Ricoh India has now reached a position where it is unable to meet its liabilities, it decided to file the application in the best interests of its customers, employees, minority shareholders, creditors and all other stakeholders.
Ricoh Company, Ltd. had offered various forms of support to rebuild Ricoh India up until October 2017, when we reevaluated the restructuring plan and our support for Ricoh India in response to Ricoh India’s continued deficit and the deterioration of its relationship with its major vendor. As a result of the reevaluation, we made a decision on October 27, 2017 not to provide any additional financial support going forward under the circumstances at that time, in order to minimize the consolidated losses of the Ricoh Group. As the largest supplier, creditor and shareholder of Ricoh India, we will closely monitor the decision of the National Company Law Tribunal of India. We recognize the importance of providing services to our customers, and we will make every effort to continue to provide services to our customers in India and maintain the quality of that service going forward.
There will be no changes to the forecasted consolidated operating results for the full year ending March 31, 2018, for Ricoh Company, Ltd.
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