Implementation of Settlement Payment and Repayment of Tenders, etc. related to Final Repayment by the Liquidated Company of the Incubator Bank of Japan

Press Release

Date: July 15, 2016

The Liquidated Company of the Incubator Bank of Japan (formerly called the “Incubator Bank of Japan, Limited”; hereinafter referred to as the “LCIBJ”) (Note 1) has announced that it will gradually make final repayment (repayment rate: 2.95686%) to rehabilitation creditors based on its rehabilitation plan, starting on September 20, 2016. Total repayment made thus far, including the final repayment announced this time, will result in the cumulative repayment rate of 60.95686%.

The Deposit Insurance Corporation of Japan (DICJ) purchased deposit claims, upon request by the depositors, beyond those protected by deposit insurance (estimated proceeds payment). If additional collections are to be made beyond the amount at which the DICJ purchased the deposit claims, the DICJ is supposed to make additional payment (settlement payment) to the original depositors, who received estimated proceeds payments, based on the collected amounts. The DICJ thus far made settlement payment twice. Regarding the upcoming final repayment announced this time as well, the DICJ will make the third settlement payment to the original depositors after the DICJ receives from the LCIBJ the repayment related to the deposit claims the DICJ purchased.

Also, the DICJ is supposed to make payment to those depositors who did not request the DICJ to purchase their deposit claims (Note 2) once the DICJ receives a lump sum repayment, representing those depositors, from the LCIBJ (repayment of tenders). Regarding the upcoming final repayment announced this time as well, the DICJ will implement the third repayment of tenders after the DICJ receives from the LCIBJ the repayment.

With respect to the detailed procedures to receive settlement payment and repayment of tenders, the DICJ will immediately mail the necessary documents to the qualified depositors after the DICJ receives tenders from the LCIBJ. The LCIBJ is planning to make final repayment starting on September 20th.

With all assets of the LCIBJ having been converted into cash, the upcoming settlement payment (third settlement payment) or repayment of tenders (third repayment of tenders) for the final repayment will be the last payment.

The LCIBJ is scheduled to be liquidated after it completes all operations.

(Note 1) The former Incubator Bank of Japan failed on September 10, 2010 and, with the DICJ having been appointed as its financial administrator, filed for the Civil Rehabilitation proceedings and has continued failure resolution. Under the rehabilitation plan (the final approval was granted on December 14, 2011), the first repayment was made from March 2012 (repayment rate: 39%) and the interim repayment was made from September 2014 (repayment rate: 19%). The former Incubator Bank of Japan was dissolved on September 10, 2012, and the LCIBJ became its liquidation body and the management by the financial administrator was ceased accordingly.

(Note 2) Those who submitted notifications to participate in the rehabilitation procedure by themselves are excluded.

(Protection of deposits at the former Incubator Bank of Japan)
Deposits for payment and settlement purposes Full amount
  • Repayment of deposits, or
  • Transfer of business to the Second Bridge Bank of Japan (currently AEON Bank, Ltd.)
General deposits Up to 10 million yen in principal  plus interest thereon
Any portion exceeding the above coverage [Those depositors who have received estimated proceeds payment]
  • So far, estimated proceeds payment and the first and second settlement payments have been made
  • The third settlement payment (final payments) is scheduled
[Those depositors represented by DICJ, which has undertaken procedures]
  • So far, the first and second repayments of tenders have been made
  • The third repayment of tenders (final payments) is scheduled

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