Kajima has received a Tokyo District Court decision to start civil rehabilitation proceedings, addressing liabilities totaling 1.3 trillion yen. The company suspended stock trading immediately to stabilize operations.
Kajima announced on July 18, 2024, that the Tokyo District Court approved its civil rehabilitation petition filed earlier. As of February 2025, total liabilities reach 1 trillion 390.8 billion yen, a figure indicating severe financial strain. This legal framework allows the company to draft a recovery plan with creditor approval. Detailed asset comparisons are pending further investigation by the administrator.
Prioritizing business continuity, Kajima will expedite its rehabilitation plan drafting. The strategy includes deferring loan repayments and issuing shares to creditors to strengthen its fiscal base. Leveraging steady revenue from core units like digital signage, the company aims to balance operational recovery with financial restructuring through new funding and asset utilization.
Kajima shares were delisted from the Tokyo Stock Exchange First Section on July 19, 2024. Current shareholders face the loss of equity, as stock value is expected to drop to zero. While existing investments are likely lost, the company advises monitoring rehabilitation progress for potential long-term value recovery based on creditor rights adjustments.
The 1 trillion 390.8 billion yen debt places Kajima in the top tier of liabilities among Japanese manufacturing firms. Industry observers watch closely for potential acquisition targets due to its intellectual property portfolio. With major business units continuing operations, the focus now shifts to the recovery plan submission within three months. Government involvement may influence the final outcome.
Analyst take
Company value may shift drastically based on creditor rights adjustments. Investors should avoid short-term volatility and focus on the core recovery plan, particularly regarding intellectual property handling and new share issuance amounts.
