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Unedited press release follows:
Notice on Rejection of Corporate Rehabilitation Application by Toshiba Samsung Storage Technology Korea Corporation
December 1, 2016 – TOKYO — Toshiba Corporation (TOKYO: 6502) has announced that the Suwon District Court of Korea yesterday determined not to commence corporate rehabilitation proceedings for Toshiba Samsung Storage Technology Korea (TSST-K), a Korea-based non-consolidated subsidiary of Toshiba engaged in the Optical Disc Drive business. Further details are as follow.
As Toshiba announced on October 12, 2016 in “Notice on Start of Proceedings on Corporate Rehabilitation of Toshiba Samsung Storage Technology Korea Corporation,” TSST-K, which is 50.1% owned by Toshiba Samsung Storage Technology Corporation (TSST), a Toshiba subsidiary, filed for corporate rehabilitation proceedings on October 12, 2016. Yesterday, the Suwon District Court decided not to commence corporate rehabilitation proceedings for TSST-K.
Bankruptcy proceedings in the Seoul Central District Court of Korea, announced on October 13, 2016 in “Notice on Bankruptcy Declaration and Start of Bankruptcy Proceedings of Toshiba Samsung Storage Technology Korea Corporation,” will now proceed and a meeting* for creditors will be held on December 15, 2016.
[*] There is a possibility that the plan for the meeting may be changed to reflect decisions of the Seoul Central District Court of Korea or progress in the proceedings.
2. Impact on Toshiba’s performance
Toshiba has recorded an allowance to its accounts receivables in respect of TSST-K of approximately 600 million yen (as of the end of September 2016). Toshiba does not hold any financial guarantees or like with regard to the liabilities of TSST-K, and TSST-K’s liabilities will have no financial impact on Toshiba.