Toyota Motor Corporation Possible Uncollectibility of Receivables (0882J)
June 26 2017 - 2:00AM
UK Regulatory
TIDMTYT
RNS Number : 0882J
Toyota Motor Corporation
26 June 2017
[Reference Translation]
June 26, 2017
To whom it may concern:
Company Name: TOYOTA MOTOR CORPORATION
Name and Title of Representative:
Akio Toyoda, President
(Code Number: 7203
Securities exchanges throughout Japan)
Name and Title of Contact Person:
Keita Kon, General Manager,
Accounting Division
(Telephone Number: 0565-28-2121)
Notice concerning the Possible Uncollectibility of Receivables,
etc. due to the Filing for the Commencement of Civil Rehabilitation
Proceedings by Takata Corporation, etc.
On June 26, 2017 (Japan) or on June 25, 2017 (U.S.), Takata
Corporation,etc. and TK Holdings Inc., (U.S.), etc. (collectively,
"Takata"), which are the business partners of our company and our
company's consolidated subsidiaries (collectively, "Toyota"),
respectively filed for the commencement of civil rehabilitation
proceedings in Japan and for bankruptcy protection under Chapter 11
of the U.S. Bankruptcy Code (collectively, "Proceedings").
Toyota is currently conducting recalls for air-bags manufactured
by Takata Group including Takata, (the "Other Party"), and
receivables for indemnification claims and other amounts owed to
Toyota by the Other Party have accrued in relation to these
recalls, and such receivables are expected to continue to accrue in
the future.
As a result of the Proceedings filed by Takata, Toyota's
indemnification claims and other amounts against the Other Party
are at the risk of becoming uncollectible or being delayed. Thus,
we inform you as follows:
With safety and comfort of our customers as our first priority,
Toyota will make its best effort to continue to receive stable
supplies of parts from the Other Party.
Note
1. The Type and Amount of Claims Held against the Other
Party
Receivables for indemnification claims and other amounts
pertaining to the recall costs (already filed) JPY 570 billion
(Note 1): The above receivables include not only the amount of
receivables in connection to the recalls of Toyota manufactured
vehicles which have already been conducted, but also include the
amount of receivables that are expected to accrue in the future in
case recalls of Toyota manufactured vehicles which have been filed
are conducted. Therefore, the amount of claims indicated above may
not correspond to the actual amount that we will hold against the
Other Party.
(Note 2): In addition to the receivables indicated above, if
additional recalls are filed, additional receivables may accrue
against the Other Party. In case there are matters to report in
relation to such receivables, we will promptly disclose such
report.
2. Future Outlook
As the allowance for above recall costs (already filed) have
already been recorded, the effect on the business results will be
insignificant.
(End of Notice)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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