Japan prosecutors weigh bringing case against Nissan after Ghosn arrest -Asahi

This file photo taken on January 4, 2016 shows chairman, president and CEO of Nissan Motor, Carlos Ghosn, gesturing during a press conference at the company's Brazilian headquarters in downtown Rio de Janeiro. (AFP)
Updated 21 November 2018
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Japan prosecutors weigh bringing case against Nissan after Ghosn arrest -Asahi

  • Ghosn, one of the global car industry’s best-known leaders, was arrested on Monday after Nissan’s internal investigations found he had allegedly engaged in years of wrongdoing

TOKYO: Japanese prosecutors are considering bringing a case against Nissan Motor Co. after Chairman Carlos Ghosn’s arrest on suspicion of financial misconduct, the Asahi Shimbun daily said on Wednesday.
Ghosn, one of the global car industry’s best-known leaders, was arrested on Monday after Nissan’s internal investigations found he had allegedly engaged in years of wrongdoing, including personal use of company money and under-reporting earnings. The Japanese company plans to remove him as chairman on Thursday.
Prosecutors said Ghosn and Representative Director Greg Kelly conspired to understate Ghosn’s compensation over five years starting in fiscal 2010 as being about half of the actual 10 billion yen ($88.65 million).
The Asahi quoted unnamed sources as saying that the mis-stating meant the company also bore responsibility and that prosecutors were eyeing the possibility of putting together a case against it.
Prosecutors were not immediately able to comment. Nissan declined to comment on the report.
There has been no comment from Ghosn or Kelly on any of the allegations against them, including a report in Japan’s Nikkei business daily on Tuesday that Ghosn had received share price-linked compensation of about 4 billion yen over a five-year period to March 2015 but that it went unreported in Nissan’s financial reports.
Reuters could not contact Ghosn or Kelly for comment.
Ghosn is also chairman and chief executive of Nissan’s French partner Renault, and chairman of Japan’s Mitsubishi Motors Corp, the third partner in the alliance.
Renault on Tuesday tapped its chief operating officer and a senior board member to fill in for Ghosn, but the board refrained from firing him while awaiting for detail on the allegations — a decision that could buy more time for an accelerated, permanent succession process.
Shares in Nissan rose 0.6 percent on Wednesday after falling nearly 6 percent a day earlier. ($1 = 112.8000 yen)


Shareholders of India’s Jet Airways approve debt-for-equity swap

Updated 48 min 54 sec ago
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Shareholders of India’s Jet Airways approve debt-for-equity swap

  • The plan will mean the lenders will have a bigger holding than any other shareholder
  • Currently, Chairman Naresh Goyal owns a 51 percent stake in the company and Abu Dhabi’s Etihad Airways owns 24 percent

MUMBAI: India’s Jet Airways said late on Friday that its shareholders approved a plan to convert existing debt to equity, paving the way for the troubled company’s lenders to infuse funds and nominate directors to its board.
Jet’s board last week approved a plan by lenders, led by State Bank of India, for an equity infusion, debt restructuring and the sale or sale-and-lease-back of aircraft.
The plan will mean the lenders will have a bigger holding than any other shareholder.
Currently, Chairman Naresh Goyal owns a 51 percent stake in the company and Abu Dhabi’s Etihad Airways owns 24 percent.
Jet, which had net debt of 72.99 billion rupees ($1.03 billion) as of end-December, has debt payments looming next month, according to rating agency ICRA. It has been unable to pay pilots’ salaries and has outstanding bills to aircraft lessors.
The company, India’s biggest full-service carrier, is struggling with competition from budget rivals, high oil prices and a weaker rupee. The share price took a beating in 2018, losing nearly 70 percent of its value.
In a regulatory filing, Jet said on Friday that 98 percent of its shareholders voted to increase the share capital to 22 billion rupees ($309.8 million) from 2 billion rupees at a special meeting.
Jet, whose financial woes are set against the backdrop of wider aviation industry problems, has been in the red for four straight quarters.