Mitsubishi Aircraft in Excess Debt for 1st Time in 2 Years

Economy

Tokyo, July 1 (Jiji Press)--Mitsubishi Aircraft Corp., the developer of the SpaceJet small passenger aircraft, fell into excess liabilities of 464.6 billion yen in fiscal 2019, which ended in March, the company said Wednesday.

It is the first time in two years for the unit of Mitsubishi Heavy Industries Ltd. <7011> to have its debts exceeding the assets.

Mitsubishi Aircraft booked massive impairment losses on the SpaceJet project, mainly because it decided to delay the first delivery of the aircraft, formally called the Mitsubishi Regional Jet, from mid-2020 to fiscal 2021, ending in March next year, or later.

The company suffered a net loss of 526.9 billion yen.

Having excess debt "will not directly affect the continuity of the project," because Mitsubishi Aircraft has been using funds from Mitsubishi Heavy to develop the aircraft, a Mitsubishi Aircraft official said.

[Copyright The Jiji Press, Ltd.]

Jiji Press