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VIET SEAFOOD

Worthless Umami Tuna Shares Create Loss For Japanese Trader

Tsukiji-based seafood trader Daito Gyorui is posting an extraordinary loss in the third quarter of its financial year as shares pledged as collateral for long-term loans turn out to be of no value. Daito Gyorui received common shares of Croatia-based tuna farmer Umami as a guarantee of repayment of loans worth JPY 2.33 billion (€18.2 million/USD 23.7 million) made to Umami's Japanese owner, Atlantis.

However, it became known in the second quarter report presented to the US Securities and Exchange Commission (SEC) by Umami that there were concerns as to whether Umami could stay in business.

Facing a probability of not being able to collect the debts by selling the stocks of Umami, Daito Gyorui made an official announcement on April 22 that it might not be able to get repaid at all.

Daito Gyorui posted provision of allowance for doubtful accounts totaling JPY 1.24 billion (€9.7 million/USD 12.6 million), as an extraordinary loss in the third quarter ending March.
With the collateral from Umami now being worthless, an additional loss of JPY 1.09 billion (€8.5 million/USD 11.1 million) was registered for the full-year account settlement.
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