Funai Electric Chairperson Yoshiaki Harada filed with the Tokyo District Court on Monday for court-led rehabilitation of the company, despite the court's recent decision to initiate bankruptcy procedures for the audio and video equipment maker.

The start of the liquidation process was "a complete surprise," Harada told a press conference in Tokyo.

"The Funai group can still get back on its feet," he said.

The court decision came after one of the company's directors filed a "quasi-voluntary bankruptcy" petition in late October.

But Harada, a former Liberal Democratic Party lawmaker that served as environment minister, immediately appealed the decision to Tokyo High Court, arguing that the company was not insolvent.

At the news conference, Harada's team claimed that the director in question was dismissed on Oct. 15 and, therefore, was unqualified to seek the court order to begin the liquidation process. They also maintained that the district court failed to recognize the fact that the entire Funai group's net worth still stands at ¥20 billion.

Even if the Harada side shows its net worth assessment to Tokyo District Court, however, it would be difficult to overturn the court's liquidation decision, people familiar with bankruptcy-related matters said.

The company had expanded its sales network in and outside Japan with the popularity of "Funai" brand television sets and audio products, but lost competitiveness due to its sluggish performance in the North American market and the rise of Chinese manufacturers following the global financial crisis triggered by the 2008 collapse of U.S. investment bank Lehman Brothers.

Its liabilities have amounted to some ¥46.1 billion, according to Tokyo Shoko Research.