Timon and Wemakeprice "Aiming for Normalization... Will Devote Company-wide Efforts"

"Cash Flow Deterioration Due to Trading Suspension and Member Attrition... Limits to Overcoming"
"Considering Fundraising Through Restructuring Funds, etc."

Tmon and Wemakeprice announced on the 29th that after filing for corporate rehabilitation with the court, this unavoidable measure is aimed at minimizing damage and promoting business normalization.

In a statement released that day, the two companies explained, "We have inevitably filed for rehabilitation to prevent the current vicious cycle where one problem causes another, spreading further, and to minimize damage to sales members and consumers."

Tmon and Wemakeprice claimed, "Although we took various measures to promptly resolve the settlement delay issue, ongoing media reports and the resulting suspension of transactions and departure of buyers and sales members accelerated, and as a consequence, cash flow rapidly deteriorated." They added, "We tried to resolve the problem through profits and cash flow generated by operating the business normally, but due to transaction suspensions and member departures, there was inevitably a limit to overcoming the cash flow deterioration."

The two companies explained that the rehabilitation procedure is a system designed to prevent damage to numerous creditors who would not be able to properly recover their claims if the debtor corporation were liquidated. It grants the debtor an opportunity to continue operating the business while ultimately enabling repayment of debts as much as possible, even if it takes a long time.

Tmon and Wemakeprice emphasized, "We aim to normalize the business through the rehabilitation system and ultimately prevent damage to creditors who are sales members and consumers who are purchasing members," adding, "We are also prepared to establish and implement drastic self-help measures during this process." They further stated, "We plan to actively review whether it is possible to pursue funding through restructuring funds by applying for the new Autonomous Restructuring Support Program (ARS Program) operated within the rehabilitation system, rather than immediately initiating compulsory rehabilitation procedures as in the existing method." Tmon and Wemakeprice concluded, "We promise to maintain a responsible attitude and devote all company-wide capabilities until the day the problem is resolved."

This content was produced with the assistance of AI translation services.