Daio Paper Corp. was placed on the Tokyo Stock Exchange watch list after saying it will probably miss its Monday earnings deadline, and could risk being delisted if it fails to meet its revised reporting date.
The company will now release its second-quarter earnings by Dec. 14 because it is still reviewing previous filings, the company said in a statement released Friday in Tokyo. The TSE said in a separate announcement that Daio may be delisted if it cannot make next month's deadline.
The maker of Elleair tissue and toilet paper said last month it was planning to file a criminal complaint against its former chairman after an investigation revealed he received massive loans from its subsidiaries. Lawmakers in the ruling Democratic Party of Japan said Friday they may ask the government to bolster staff at the Securities and Exchange Surveillance Commission as part of its efforts to strengthen corporate governance after the scandals at Daio and Olympus Corp.
Daio Paper was established in 1943 in Iyomishima, Ehime Prefecture, by Isekichi Ikawa, grandfather of former Chairman Mototaka Ikawa. A company investigation revealed that Mototaka Ikawa borrowed ¥10.7 billion in 26 installments between May 12, 2010, and Sept. 6, 2011, from seven Daio Paper subsidiaries, according to a statement Oct. 28. Ikawa had not paid back ¥5.93 billion as of Oct. 28, the statement said.
Previous reports alleged he spent vast sums at casinos in Macau.