Alas, another undeserving publisher is falling to its knees at the hands of financial problems.
The company Index (or Atlus), the publisher of games such as the Persona series, Shin Megami Tensai and, soon, the upcoming game Dragon’s Crown, is facing financial peril. According to Index’s main website, they’ve announced that they’re to undergo civil rehabilitation proceedings.
At the meeting of the Board of Directors held on June 27, 2013, and resolved to make a petition for civil rehabilitation proceedings, to conduct a petition for civil rehabilitation proceedings in the Tokyo District Court in the same day, the Company was accepted was. In addition, from the Tokyo District Court, protective order whose contents payment Prohibition and supervision order at the same date, so has been issued, I will inform you as follows.
It becomes a place where it becomes a situation like this, to apologize for shareholders, customers, business partners, and worry trouble enormously regarding. Everyone of the parties concerned other, and without any excuse, I apologize deeply.
1. Reason and circumstances that led to the petition
Ever since the establishment in 1995, the business revolves around the content and business solutions and digital games business, the Company has earned a profit in a stable manner.
On the other hand, I went to business acquisitions that target the domestic and foreign companies, but the expected revenue does not increase in overseas acquisitions in particular, investment heavy losses occurred. In addition, due to the Corporation Incubator Bank of Japan in September 2010, was to build a small business promotion network that we had participated was bankrupt, the financial health of the participating companies of the network affected by the collapse worse However, many of the investments you have made to the participating companies of the network becomes uncollectible also our own, our financial condition has worsened. In addition, in the second quarter ended August 31, 2013, by, for example reversal of deferred tax assets and provisions for bad debt processing a large amount of generated by the investment, I got into a debt exceeded both consolidated and non-consolidated.
It was a condition that leads to uneasiness from suppliers such circumstances, financial institutions and such like, cash flow is tight. Therefore, it’s up to recently, independent reconstruction leads to judgment and is extremely difficult, and have chosen to take a plunge reconstruction by civil rehabilitation proceedings.
In a nutshell, it’s more of a reorganization, which means they’ll still be in business, but owned by creditors. However, according to Cnet Japan it looks as though they’re looking for a full on buyout of the company, or at minimum, a merger.
It’s sad to see another go if things don’t work out. Here’s to hoping they find someone who’s willing to scoop them up and get them back to their old selves again.
*COUGH* SONY *COUGH*