Scandal-hit Daio Paper Corp. on Wednesday reported ¥2.84 billion in net losses for the first fiscal half of 2011 after the company logged some ¥4.47 billion in special losses over its dubious lending to casino-addicted former Chairman Mototaka Ikawa.

The revelation came in a report submitted by the deadline for the firm to avoid being delisted from the Tokyo Stock Exchange.

Ikawa, a member of the founding family, borrowed massively from seven Daio Paper units. The money was gambled away at casios in Macau and Singapore.

In an effort to improve its public image, the company plans to buy its founding family's shareholdings in the company's subsidiaries to help prevent family members from using their influence for unethical endeavors, company sources said.

With the release of business results for the six-month period, Daio Paper met Wednesday's deadline to avoid being delisted from the TSE. The company, which fell into the red with a net loss of ¥4.46 billion a year earlier, delayed the release from Nov. 14 as initially scheduled after the loan scandal involving Ikawa broke.

The 47-year-old grandson of Daio's founder instructed the seven units to transfer a total of ¥10.68 billion to various banks accounts between May 2010 and September 2011 to fund his casino gambling, among other reasons, the company's in-house investigative panel said.

In the Daio Paper group, founding family members have held most of the shares in subsidiaries while serving as their presidents.