On January 29, 2018, Ricoh’s Indian subsidiary, Ricoh India Limited filed an application for initiating corporate insolvency resolution process with the National Company Law Tribunal pursuant to Section 10 of the Insolvency and Bankruptcy Code, 2016 of India. The filing of application, based on a decision by Ricoh India’s board, was announced on the same day.
Ricoh India had been trying to effectuate management reforms, cost reductions and other measures for the purpose of rehabilitating its business; however, its business performance did not improve and deficit continued.
Ricoh India announced that, since Ricoh India has now reached a position where it is unable to meet its liabilities, it decided to file the application in the best interests of its customers, employees, minority shareholders, creditors and all other stakeholders.
Despite various efforts by Ricoh Company to revive the subsidiary, it showed continued deficit and deterioration of its relationship with its major vendor.
“As the largest supplier, creditor and shareholder of Ricoh India, we will closely monitor the decision of the National Company Law Tribunal of India. We recognize the importance of providing services to our customers, and we will make every effort to continue to provide services to our customers in India and maintain the quality of that service going forward,” said the parent company in a notification.
Liabilities of Ricoh India, as of the end of March, 2017, stood at Rs.21.0 billion.
