1 Bankruptcy Proceedings in General
Q1 What is a bankruptcy proceeding?
A1 This is a procedure for debtors who are unable to pay debts or are insolvent to realize and cash all their assets under the supervision of the court and distribute them fairly to all creditors.
Onkyo Home Entertainment Corporation filed a petition for bankruptcy with the Osaka District Court on May 13, 2022, and at 3:00 p.m. on the same day, a decision was made to commence bankruptcy proceedings (Case No. Osaka District Court REIWA4 (Fu) No. 1640).
Q2 What is the position of a bankruptcy trustee?
A2 Under the supervision of the court, and in a fair and neutral position with no interest in the bankrupt, the bankruptcy trustee realizes and disposes of the bankrupt's assets, and, if dividends are available, conducts repayments, etc. through dividend procedures after investigating claims.
Q3 How exactly will the bankruptcy proceedings proceed in the future?
A3 The bankruptcy trustee will investigate the bankrupt's assets and realizes, etc. the same, and if it becomes possible to pay dividends, the bankruptcy trustee will notify you and the court will also send you a form of proof of claim. On the other hand, if no assets are found to the extent that they can be distributed, the bankruptcy proceedings will be terminated without filing a proof of claim.
[Updated on April 7, 2023]
Now it has become possible to pay dividends, and a period for investigating the claims has been designated. Creditors (excluding shareholders, purchasers, etc. of the bankrupt company's products) should refer to Q 14 and "Sending of a Proof of Bankruptcy Claim."
[Updated on May 14, 2024]
Simplified Dividend Payment Procedure has been completed, therefore a creditors meeting for the purpose of reporting account to creditors upon the termination of trustee’s duties will be held on June 24, 2024 at Osaka District Court; Click here
Q4 I have not received the "Notice of Commencement of Bankruptcy Proceedings, etc." What should I do?
A4 Notices have been sent to creditors sequentially since late May 2022. If you have not received it after May, please contact the bankruptcy trustee office at (FAX No.: +81-6-6221-3344) to have it resent to you.
Q5 I received the "Notice of Commencement of Bankruptcy Proceedings, etc." from the court. What should I do?
A5 There is no need to do anything in particular to the court at this time. It will depend on the progress of this bankruptcy case, but if dividends to general bankruptcy creditors are expected, the court will contact you together with a form of proof of claim, and you will be required to submit, etc. the proof of claim at that time.
Information on the progress, etc. of bankruptcy proceedings will be provided to the parties concerned on this website as appropriate, so please check back.
[Updated on April 7, 2023]
Now it has become possible to pay dividends, and a period for investigating the claims has been designated. Creditors (excluding shareholders, purchasers, etc. of the bankrupt company's products) should refer to Q 14 and "Sending of a Proof of Bankruptcy Claim."
[Updated on May 14, 2024]
Simplified Dividend Payment Procedure has been completed, therefore a creditors meeting for the purpose of reporting account to creditors upon the termination of trustee’s duties will be held on June 24, 2024 at Osaka District Court; Click here
Q6 I received the "Notice of Commencement of Bankruptcy Proceedings, etc." that I have no recollection of. What should I do?
A6 The Notice of Commencement of Bankruptcy Proceedings, etc. was sent to those whom we know to be creditors based on the information we have on hand at this time.
If you have no recollection of this, please contact the bankruptcy trustee office. (FAX No.: +81-6-6221-3344)
2 Creditors' Meetings, Provision of Information, etc.
Q7 Aren't creditors' meetings held?
A7 At present, there are no plans to hold a creditors' meeting hosted by the court. Information will be provided to creditors through this website, so please check back.
[Updated on May 14, 2024]
Simplified Dividend Payment Procedure has been completed, therefore a creditors meeting for the purpose of reporting account to creditors upon the termination of trustee’s duties will be held on June 24, 2024 at Osaka District Court; Click here
Q8 Are there any plans for the bankruptcy trustee to hold a creditors' meeting?
A8 At present, there are no plans to hold a creditors' meeting hosted by the bankruptcy trustee. Information will be provided to creditors through this website, so please check back.
Q9 I would like to know the status of Onkyo Home Entertainment’s property.
A9 No property status report meeting will be held, but the bankruptcy trustee is scheduled to provide creditors with a report on the status of the property through this website in due course.
[Updated on April 7, 2023]
For creditors, please check "For Creditors" on this website. For details, please refer to the notice from the bankruptcy trustee enclosed when the proof of claim was sent.
3 To Shareholders
Q10 What will happen to Onkyo Home Entertainment's shares?
A10 If all debts can be repaid in the bankruptcy proceedings and there are residual assets, they will be distributed to the shareholders. However, based on the information available at this time, the prospects for the distribution of the remaining assets seem extremely low.
Q11 Can shareholders also be involved in bankruptcy proceedings?
A11 Shareholders are not expected to be involved in the bankruptcy proceedings in their capacity as such.
Information on the progress, etc. of bankruptcy proceedings will be provided on this website as appropriate, so please check back.
Q12 What will happen to the shareholder benefits (ONKYO DIRECT 10% off coupon) that were supposed to be presented in late January 2022?
A12 Rights based on the status as a shareholder, including shareholder benefits, are not scheduled to be exercised in the bankruptcy proceedings.
We are afraid that there is no prospect of being able to send either QUO cards or ONKYO DIRECT coupons at this time.
Q13 I was told that you would send QUO cards (300 yen) and ONKYO DIRECT coupons (700 yen) to shareholders who exercised their voting rights at the annual shareholders meeting held on September 3, 2021, but I have not received them yet. What will happen to them?
A13 We are afraid that there is no prospect of being able to send either QUO cards or ONKYO DIRECT coupons at this time.
[Updated on April 7, 2023]
4 Filing of Proofs of Claims and Investigation of Claims
Q14 Please tell me about filing of a proof of claim and investigation of claims.
A14 As described in Q3, the Osaka District Court has recently designated a period for investigating claims.
Creditors (excluding shareholders, purchasers, etc. of the bankrupt company's products) will receive a notice and a proof of claim form the Osaka District Court sequentially after April 7, 2023, stating that the period for investigating claims has been set. Please refer to "Notice" and "[How to File a Proof of Claim, etc.]" prepared by the bankruptcy trustee, which are enclosed with these documents, and file your proof of claim.
The period for filing proofs of claims is set by the decision of the Osaka District Court on June 7, 2023 (must arrive no later than that date). If you fail to meet the deadline, you may be required to incur extra expenses or may not be allowed to exercise your rights as a creditor, so please observe the period for filing proofs of claims.
If you have not received a proof of claim by April 24, 2023, please contact the bankruptcy trustee. (Email for creditors only: ohetrustee@komatsulaw.com, fax: +81-6-6221-3344, phone: +81-6-6221-3358).