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Mar 23, 2013

[NEVADA Blog] This Year’s First Bankrupt Listed Company


This bankruptcy is because the SME Finance Facilitation Act, which came into force in December 2009, will expire at the end of March.  The number of bankrupt companies will temporarily be curbed as a result of the instruction of the Financial Services Agency, but eventually many small-to-medium-sized enterprises will get bankrupt.  

As I often talk in video lectures, the time will come when people who cannot afford to pay for food will get to depend on consumer loan companies and women will sell themselves to pay back money as is the case with Korea.  It is apparent that consumer loan companies and major banks that put money into such companies will make lots of money and most of profits will go to foreign shareholders.  

All I can do is to give you a warning.  Acute observers will come up with an idea of buying stocks in consumer loan companies to make money.  Even if I feel sure that I can definitely make money, I will never do such thing because it goes against my conscience to gain profits in that way.

However, in this world, but rather in the human world I should say, nothing makes sense.  Regrettably, it cannot be helped that such people will be destroyed.

Masatoshi Takeshita
March 15, 2013

 A young homeless person begging in London. 
Photograph from guardian.co.uk

English translation of a Japanese article: NEVADA Blog – March 14, 2013 –

This Year’s First Bankrupt Listed Company

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On March 14, Tokyo Cathode Laboratory Co., Ltd. (capital: JPY 2,323,105,195, representative: Mr. Naotake Okubo, number of employees: 109, location: 1-10-14 Itabashi, Itabashi-ku, Tokyo) applied to the Tokyo District Court for bankruptcy rehabilitation.

The company, which was founded in May 1950 and reorganized into a corporation in April 1953, is an independent manufacturer of research and development of electronic part and semiconductor testing equipment.  The company has been highly evaluated for its cathodes used for TV tubes.  Additionally, it started manufacturing probe cards for IC testing (jigs used for IC electric testing) for the first time in Japan with technological cooperation with the Rucker & Kolls in U.S.  The company has won high praise from its technological development.
The company, with main business partners of major home appliance makers and semiconductor makers, posted sales of approximately JPY 13,652,000,000 in the business year ending in March 2008.

However, after the Lehman Brothers’ crisis, the semiconductor industry fell into the drums and was seriously affected by the East Japan Great Earthquake and the flood in Thailand in 2011.  As a result, the annual sales decreased to approximately JPY 2,573,000,000 in March 2012.  During that time, the company worked for reconstruction by means of sale of business and concentration of management resources on probe card business in vain and gave up unaided reconstruction.
It has the amount of debt of approximately JPY 3,200,000,000.

Incidentally, this is this year’s first bankrupt listed company and the 6th bankrupt company in the fiscal year of 2012, following Sakurada (listed in the first section of the Tokyo Stock Exchange, located in Chiba Prefecture) which went bankrupt in November.

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It is likely that bankruptcy of small-to-medium sized enterprises will drastically increase in number after April 1.  The number is estimated to be between 80,000 and 90,000.

Something horrifying might happen.

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