Japan’s FOI Files For Bankruptcy

TOKYO (Kyodo) -- Embattled semiconductor production equipment maker FOI Corp. filed for bankruptcy proceedings with the Tokyo District Court on Friday after piling up liabilities totaling around 9.3 billion yen, a lawyer overseeing the process said.

The filing follows the Tokyo Stock Exchange's decision Tuesday to delist FOI on June 19 over accounting fraud.

The court ordered the protection of the company's assets from creditors.

FOI, based in Sagamihara, Kanagawa Prefecture, has admitted padding sales by around 10 billion yen in its earnings for fiscal 2008, which ended March 2009. The company submitted the false financial statements when it applied to be listed on the TSE's Mothers market for start-up companies in November last year.

Securities authorities raided the company in May on suspicion of booking bogus sales and padding most of its financial statements.

On Tuesday, the Tokyo bourse designated FOI stock as a liquidation issue to remind investors of its forthcoming delisting.

FOI has affiliated companies in China, Taiwan, South Korea and the United States.

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