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Stocks

Takata set for delisting July 27

Shares poised for tumble Tuesday as investors liquidate holdings

| Japan

TOKYO -- Takata will be removed from the Tokyo Stock Exchange on July 27, the bourse said Monday, citing the embattled autoparts maker's filing for bankruptcy protection that day.

The shares, now listed on the exchange's first section, ended last week at 160 yen. The stock has plunged by two-thirds from its close June 15 -- just before news emerged of Takata solidifying plans for a protection filing -- as investors scrambled to cash out. Though trading was halted for the day Monday, investors still could place orders, and a wave of sell orders pushed the quoted price of the shares limit-down to 110 yen. Trading resumes Tuesday.

"The matter of the stock will be settled during the rehabilitation process," attorney Nobuaki Kobayashi, a member of the committee of outside experts tasked with crafting Takata's turnaround plan, told reporters Monday.

But nearly all companies that filed for bankruptcy protection under Japan's Civil Rehabilitation Act -- the route taken by Takata -- wiped out their capital, rendering their shares effectively worthless.

Stocks that sink to nearly zero tend to attract traders looking to turn a profit on short-term gains. Takata's shares could fluctuate on this sort of speculation in the month before its delisting. But market players expect the price to end up heading toward 1 yen.

Takata shareholders still can vote on proposals at Tuesday's general meeting. Typically, "voting rights are lost at the time that the court accepts a rehabilitation plan" that involves canceling all outstanding shares, said Soichiro Fujiwara, an attorney and expert on corporate restructuring.

(Nikkei)

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