Last week Shinohara filed for Civil Rehabilitation Act, a legal process to reconstruct an organisation internally, similar to the US Chapter 11 bankruptcy protection.

Shinohara, which is represented in Australia by the Currie Group, said the purpose of this Act is rehabilitation for debtors in financial difficulties with the aim of ensuring the rehabilitation of the debtors’ business or economic life.

Mikio Shinohara, president of the troubled company said, “Shinohara swears to do our utmost to achieve corporate revival.”

The family-owned company adds that it is currently still manufacturing and selling products normally.

Shinohara says, “We still continuously pursue better technology and better service for our products. We guarantee the supply of spare parts and the service activities to all Shinohara users as before.”

Currie Group has told media it will be business as usual for local Shinohara users.

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter