Gonzo(GDH) in financial trouble?

[Lego]

I've heard about this before but ANN says they could face delisting.

The Tokyo Stock Exchange notified (http://www.tse.or.jp/news/200806/080630_c.html) investors on Monday that GDH (http://www.animenewsnetwork.com/encyclopedia/company.php?id=1279), the parent holding company of the Gonzo (http://www.animenewsnetwork.com/encyclopedia/company.php?id=395) anime studio and the GONZO Rosso Online game studio, has been put on a one-year grace period to improve its finances or face delisting. The grace period was retroactively dated back to April 1 (the beginning of the Japanese fiscal year) of this year and will end on March 31 of next year. According to the exchange, these steps are being taken since GDH has been determined to be insolvent, or having total financial liabilities that exceed its total financial assets, during the accounting period that ended in March of 2008. The steps went into effect in accordance with article 603, section 3 of the exchange's listing regulations (http://www.tse.or.jp/rules/regulations/1-6.pdf) (page 38).

http://www.animenewsnetwork.com/news/2008-07-02/gonzo-parent-firm-on-notice-for-possible-delisting

With the amount of work Gonzo does one wouldn't think they'd be in the hole that much money.

[Andrew Cunningham]

With the amount of work Gonzo does one wouldn't think they'd be in the hole that much money.

They aren't. Their parent company is.

[Lego]

They aren't. Their parent company is.


Depending on the circumstances, a company and its subsidiaries can continue to operate even if its stocks have been delisted.

The parent company still holds Gonzo though, so hopefully they can right the ship.

[The Great Bear]

Gonzo the studio itself could survive a meltdown if the holding company folded. But it would likely be sold off to pay the holding company's debts. So, who knows who would take control of it in that situation.

[Lego]

Gonzo the studio itself could survive a meltdown if the holding company folded. But it would likely be sold off to pay the holding company's debts. So, who knows who would take control of it in that situation.

Gonzo seems to be well enough known that someone might take a chance on them if GDH can't get back on the right track. They do have a show they're pushing really hard in Linebarrel coming out this fall.