Rengo Co., Ltd. announces that it was resolved at its Board of Directors’ meeting on March 26, 2021 to enter into a memorandum of understanding (MOU) in regards to supporting the business reconstruction of Taiko Paper Mfg., Ltd. (TPM), which is in the process of corporate reorganization, and entered into the MOU with the trustees of TPM on the same day.
The MOU will come into effect subject to the permission of the court in the reorganization proceedings.

As announced in the news release entitled “Rengo Enters into Memorandum of Understanding Regarding Support for Taiko Paper Mfg., Ltd.” on January 15, 2021, TPM filed an application to commence corporate reorganization proceedings in the Tokyo District Court on the same day. After repeated discussions with the trustees of TPM, in order to consider support for its business reconstruction, Rengo resolved to enter into the MOU.
Details will be stipulated in the proposed reorganization plan to be prepared, but on the condition that the proposed reorganization plan is approved by the court and on September 1, 2021 (scheduled), Rengo will make TPM a wholly owned subsidiary and aim to rebuild the company's management and expand its business operations by supporting both manufacturing and sales of TPM as a member of the Rengo Group.
In addition, prior to making TPM a wholly owned subsidiary, Rengo will make a full effort not to damage TPM's business value, such as by lending the funds necessary for its business continuity.

The impact of entering into the MOU and the conversion of TPM into a wholly owned subsidiary on the consolidated and non-consolidated business results of Rengo is currently under investigation and will be announced as soon as it is determined.