TSST Optical Disc Drive Business Starts Corporate Rehabilitation

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Toshiba Corporation announced that Toshiba Samsung Storage Technology Korea (TSST) has received approval from the Seoul Central District Court to start corporate rehabilitation proceedings.

Related news:

28 March 2014 Toshiba and Samsung Sell TSST Optical Disc Drive Business
16 May 2016 TSST Optical Disc Drive Business Hits The Skids

For more information visit: www.toshiba.com; www.tsst.co.kr

Unedited press release follows:

Notice on Start of Corporate Rehabilitation of Toshiba Samsung Storage Technology Korea Corporation

June 17, 2016 – TOKYO — Toshiba Corporation (TOKYO: 6502) has announced that Toshiba Samsung Storage Technology Korea (TSST-K), a Korea-based non-consolidated subsidiary of Toshiba, has received approval to start corporate rehabilitation proceedings from the Seoul Central District Court. Further details are as follow.

1. Outline of corporate rehabilitation proceedings
Subsequent to a May 11 announcement, “Notice of Start of Proceedings on Corporate Rehabilitation of Toshiba Samsung Storage Technology Korea Corporation”, the corporate rehabilitation program filed by TSST-K in which Toshiba Samsung Storage Technology Corporation, a Toshiba Group company holds 50.1% of the outstanding shares, has been accepted by Seoul Central District Court. This decision was announced on June 16.

2. Future Plans [*]
(1) Filing deadline for receivables: July 15, 2016
(2) Ordinary period for investigation: Up to July 29, 2016
(3) Submission deadline for rehabilitation plan: August 26, 2016

[*] There is a possibility that the plan may be changed to reflect decisions of the court or the situation in applying the plan. Under Korean law, the deadline for court approval of the company’s rehabilitation is within a year from the decision to allow the rehabilitation plan to proceed, though this deadline can be extended by up to a maximum of six months.

3. Impact on Toshiba’s performance
The company holds accounts receivable in respect of TSST-K with a value of approximately 600 million yen (as of the end of March 2016) and has recorded an allowance for this. Toshiba does not hold any financial guarantees or other contractual obligations with regard to the liabilities of TSST-K, and TSST-K’s liabilities will have no financial impact on Toshiba.