The OEM has released a notice relating to its Indian subsidiary’s application to initiate a corporate insolvency resolution process.
Towards the end of 2017, The Recycler reported on the insolvency solution process filed against Ricoh India by one of its creditors, Fourth Dimension Solutions. The petition to initiate the process was thrown out by the National Company Law Tribunal and was subsequently withdrawn by Fourth Dimension Solutions, but the scandal did not end there for Ricoh India.
Shortly after, the parent company revealed that it had opted to change its “assistance policy” for Ricoh India, in a bid to lessen “the consolidated losses” of the OEM, and top executives opted to take voluntary pay cuts over a 3-month period.
Now, the Japanese-based OEM has published a notice on its website revealing Ricoh India’s application to initiate a corporate insolvency resolution process with the National Company Law Tribunal, filed on 29 January 2018.
The OEM stated that “Ricoh India has been trying to effectuate management reforms, cost reductions and other measures for the purpose of rehabilitating its business; however, its business performance has not improved and deficit has continued. Additionally, Ricoh India’s relationship with its major vendor has deteriorated, and it resulted in non-fulfilment of contracts by the vendor and failure to collect receivables from business partners. 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.”
Ricoh explained that, as Ricoh India’s main supplier, shareholder and creditor, it would “closely monitor” the decision of the National Company Law Tribunal and would “make every effort” to keep providing services to Indian customers “and maintain the quality of that service going forward.”
