A Complex Saga
Funai Electric Co., a Japanese audiovisual equipment maker, has been embroiled in a complex bankruptcy saga since its sale to an investment fund for just 1 yen. The company's former president, Tomokazu Ueda, transferred controlling interest to EFI Kabushiki Fund before resigning in September 2023.
Ueda has not explained the reasons behind the 1-yen sale, but he claims it was due to Funai's financial struggles. However, the new management team installed by EFI Kabushiki Fund is challenging the bankruptcy proceedings, arguing that they were filed by an unauthorized director and that Funai has sufficient assets to meet its liabilities.
The bankruptcy proceedings were initiated by a director affiliated with the founding family, who claimed Funai had a negative net worth. However, the new management team, led by Chairman Yoshiaki Harada, contends that the director was dismissed before filing for bankruptcy and that the company has a net worth of 20 billion yen.
Harada plans to rehabilitate Funai by expanding new businesses and securing funds through sales of TV operations. However, legal experts believe that reversing the bankruptcy proceedings and switching to rehabilitation will be difficult.
The situation remains uncertain, with the court yet to rule on the validity of the bankruptcy proceedings and the new management team's plans for rehabilitation.