Note 2-18

18 DIP stands for debtor in possession. DIP finance refers to loans to corporations that are preparing restructuring plans by using legal restructuring procedures. As for DIP finance for small and medium-sized enterprises, Shoko Chukin Bank has already started offering such finance and the Japanese Finance Corporation for Small Business is scheduled to start a similar service by the end of the current fiscal year. It is hoped that the moves of these government affiliated financial institutions will be the impetus for active DIP financing by private financial institutions.