Akebono Brake Falls into Negative Net Worth
Tokyo, Aug. 6 (Jiji Press)--Struggling Japanese auto parts maker Akebono Brake Industry Co. <7238> said Tuesday that its debts exceeded its assets by 400 million yen as of the end of June.
The company saw its group net loss swell to 8,887 million yen in April-June from 330 million yen a year before as it booked a special loss of 7.8 billion yen as costs to recall defective parking brakes.
Akebono Brake is now rebuilding itself under an out-of-court restructuring process known as alternative dispute resolution, after it ran into financial difficulty due to a slump in North America operations.
The company is set to receive 20 billion yen in capital injection from a business turnaround fund.
Yoshimasa Ogino, Akebono Brake executive vice president, said at a press conference that the company will be able to return to an excess of assets over debts by the end of September.
[Copyright The Jiji Press, Ltd.]