Struggling consumer credit firm Orient Corp. said Wednesday it will liquidate four more financial subsidiaries to bolster the rehabilitation efforts of the parent company.
Liquidating the four money-lending units — Tao International Co., Kagen Co., Tao Investment Co. and Orico Tama Co. — was approved by the company’s board of directors, Orient said.
The parent firm has already booked an extraordinary loss of 32.25 billion yen in the first half of the 2002 business year as costs to liquidate the four units.
Orient, listed on the first section of the Tokyo Stock Exchange, and the four subsidiaries are all based in Tokyo.
Orient deemed it impossible for the four subsidiaries to revive their operations, which deteriorated after their mortgage-backed corporate loans became uncollectible due to the implosion of the asset-inflated bubble economy, it said.
The company decided earlier this year to liquidate two other financial subsidiaries, Orient Land Co. and Holon Fund Co.
The latest liquidation plan means that Orient will dissolve six of the seven financial subsidiaries that have pressured earnings at the parent firm.
Orient will keep trying to resuscitate the business of the remaining unit, Orifund Co., it said.
Orient posts net loss
Consumer credit firm Orient Corp. said Wednesday it posted a group net loss of 96.07 billion yen in the fiscal first half to Sept. 30, a sharp reversal from the 22.52 billion yen profit recorded the previous year. The company attributed the plunge to an extraordinary loss of 118.2 billion yen incurred by sales of real estate, liquidation of financial subsidiaries and other factors.
At the group pretax level, Orient posted a profit of 16.55 billion yen in the April-September period, down 37.2 percent from a year earlier, with revenues of 158.03 billion yen, down 3.3 percent. For the full year through next March 31, Orient forecast a group net loss of 94 billion yen. and a pretax profit of 27 billion yen on revenues of 300 billion yen.
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