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.
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Buyer
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Corporate name
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FUJI CREDIT LTD.
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Location
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Daiichi Fuji Building
2-12, Kawaramachi 2-chome, Chuo-ku, Osaka City
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Business description
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Consumer finance
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Relationship with the Company
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Capital tie or personnel tie: none
Business relationship: An agreement of transfer of loans receivable in the past
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Book value of the loans
transferred
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JPY 6,507 million
(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)
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Transfer price
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JPY 1,474 million
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Date of agreement
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June 11, 2010
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Date of transfer
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June 14, 2010
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Extraordinary loss stemmed
from transfer
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JPY 2,939 million
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Management and collection
of the loans transferred
after transfer (transfer notice)
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Undertaken by FUJI CREDIT LTD., the buyer
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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
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