Money Forward Flags Risk of 106 Million Yen Loss at Subsidiary

MT Newswires Live11-20 06:45

Money Forward (TYO:3994) reported a potential 106.4 million yen loss at its subsidiary Money Forward Kessai, after a bankruptcy filing by client Hitoiro, according to a Tuesday filing on the Tokyo Stock Exchange.

Money Forward Kessai, which provides invoice financing and payment services, received a bankruptcy commencement notice for Hitoiro on Nov. 18, raising concerns over uncollected receivables.

While the exposure is fully insured, 10% of the loss, or 10.6 million yen, will be recorded as a provision for doubtful receivables this fiscal year, the company said.

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