Tuesday, 29 September 2015
MOL Announces Equity Method Affiliate's Application for Commencement of Civil Rehabilitation Procedures, and Recording of Extraordinary Loss in Financial Results
TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President&CEO: Junichiro Ikeda) announced that Daiichi Chuo Kisen Kaisha, its equity method affiliate, filed an application for the commencement of civil rehabilitation procedures to the Tokyo District Court today after passing a necessary resolution at Daiichi Chuo Kisen Kaisha board of directors' meeting. As a result, MOL expects to record an extraordinary loss.
Recording extraordinary loss
MOL projects an extraordinary loss of about ¥25 billion as the stock revaluation of the affiliate in the 2Q consolidated financial results for the fiscal year ending March 31, 2016, due to Daiichi Chuo Kisen Kaisha's commencement of civil rehabilitation.
Meanwhile, the impact of the extraordinary loss on the business performance for the full fiscal year is currently under close examination.