Extraordinary loss from transfer of loans


 

TIDMTAK 
 
RNS Number : 2231Q 
Takefuji Corporation 
30 July 2010 
 

Announcement of Extraordinary Loss Resulting from a Transfer of a Part of Loans 
Receivable 
 
TAKEFUJI CORPORATION (the "Company") announces that it expects to record 
extraordinary loss resulting from a transfer of a part of loans receivable 
managed at branch offices as below. 
 
                                    Details 
 
1. Outline of the transaction and the resultant extraordinary loss 
The Company and its subsidiaries (the "Group") had been considering funding 
through transfer of assets to secure necessary funds for operation in the 
foreseeable future.  After April 2010, it was decided that the Group should 
conduct a transfer of a part of loans receivable managed at branch offices in 
addition to conventional approaches.  Expected extraordinary loss related to 
such conduct is as follows. 
 
+--------------+---------------------------------------+---------------------------------------+ 
| Buyer        | Corporate name                        | FUJI CREDIT LTD.                      | 
+              +---------------------------------------+---------------------------------------+ 
|              | Location     | Daiichi Fuji Building                 | 
|              |              | 2-12, Kawaramachi 2-chome, Chuo-ku,   | 
|              |              | Osaka City                            | 
+              +--------------+---------------------------------------+ 
|              | Business     | Consumer finance                      | 
|              | description  |                                       | 
+              +--------------+---------------------------------------+ 
|              | Relationship | Capital tie or personnel tie: none    | 
|              | with the     | Business relationship: An agreement   | 
|              | Company      | of transfer of loans receivable in    | 
|              |              | the past                              | 
+--------------+--------------+---------------------------------------+ 
| Book value of the loans                              | JPY 6,507 million                     | 
| transferred                                          | (against which JPY 546 million of     | 
|                                                      | allowance for credit losses has been  | 
|                                                      | provided)                             | 
|                                                      | (against which JPY 1,458 million of   | 
|                                                      | allowance for losses for refund of    | 
|                                                      | interest received from customers)     | 
+------------------------------------------------------+---------------------------------------+ 
| Transfer price                                       | JPY 1,474 million                     | 
+------------------------------------------------------+---------------------------------------+ 
| Date of agreement                                    | June 11, 2010                         | 
+------------------------------------------------------+---------------------------------------+ 
| Date of transfer                                     | June 14, 2010                         | 
+------------------------------------------------------+---------------------------------------+ 
| Extraordinary loss stemmed                           | JPY 2,939 million                     | 
| from transfer                                        |                                       | 
+------------------------------------------------------+---------------------------------------+ 
| Management and collection                            | Undertaken by FUJI CREDIT LTD., the   | 
| of the loans transferred                             | buyer                                 | 
| after transfer (transfer notice)                     |                                       | 
+--------------+---------------------------------------+---------------------------------------+ 
 
2. Effect on operating results 
Although the Company records an extraordinary loss of JPY 2.9 billion from the 
transfer of a part of loans receivable described above, neither the forecast for 
the consolidated full year operating results for the fiscal year ending March 
31, 2011 nor the forecast for non-consolidated full year operating results for 
the fiscal year ending March 31, 2011, both announced on May 13, 2010, will be 
revised. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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