Business / Financial Markets

Tokyo Stock Exchange to relax delisting criteria for virus-affected firms

JIJI, Kyodo

The Tokyo Stock Exchange will introduce special measures, including relaxing its delisting criteria, for companies that have suffered a decline in their business due to the coronavirus outbreak, sources have said.

The TSE hopes to implement such measures as soon as possible after gathering opinions from people involved in the stock market.

Under the preferential measures, the TSE will extend the grace period before the delisting takes place from one year to two years for firms that have fallen into insolvency from the effects of the new coronavirus, according to the sources.

Even if an auditing firm were to deem financial results of a company as inappropriate, the TSE will not consider delisting the firm if such business results were due to the virus outbreak.

Meanwhile, the TSE will exclude the effects of the virus from its examination of new listing cases if applicants’ businesses deteriorate on a short-term basis because of the virus.

The TSE introduced similar measures shortly after the March 2011 earthquake and tsunami that hit the Tohoku region, and the powerful earthquakes in and around Kumamoto Prefecture in 2016.

In a related move Wednesday, informed sources said Skymark Airlines plans to delay its re-listing on the TSE, originally expected in the first half of this year, due to plummeting travel demand triggered by the virus outbreak.

Skymark was delisted in 2015 after filing for bankruptcy protection under the civil rehabilitation law. It underwent rehabilitation with assistance from ANA Holdings Inc. and the investment fund Integral Corp.

The company applied for re-listing on the TSE in October last year.

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