FILE PHOTO of Japan Display’s new chief executive officer Minoru Kikuoka talks during an interview with Reuters in Tokyo, Japan, from October 7, 2019. REUTERS/Kim Kyung-Hoon
TOKYO (Reuters) – Apple Inc will help you to Japan Display Inc. due to the timing of the payment, a source familiar with the matter said, as the panel supplier is looking to stabilize its finances.
The CEO Minoru Kikuoka, who took the helm in September, told reporters on Wednesday that the concern over an imminent cash shortage, it had to be removed, but it is not Apple with it’s name.
The support agreements have also been other business partners in order to facilitate payment arrangements, it would be to improve the short and long-term funding by as much as 40 billion yen ($370 million), he added.
The actions are of having to deal with a value of at least 50 billion yen ($470 million) and Japan Display is looking to clinch this week, but we’ve had to scramble after a Chinese investment firm, the Harvest suddenly pulled out of a plan.
Kikuoka said, it would be possible for the revised bailout deal would not be completed this month, but, with the new agreements, customers, and other partners are already enough to ensure that the company will continue in business.
Japan Display, which is Apple’s, for about 60% of its revenue, has lost money for the last five years, and its liabilities now exceed its assets.
Of the scheduled bailout funds and for a value of at least us $470 million, Apple is planning to invest up to $200 million, double the amount of what was originally planned, sources with direct knowledge of the talks said.
The Hong Kong-based Oasis Management is to contribute $150-180 million, with Japan Display, said to be.
Japan Display is due to Apple’s close to $900 million of the $1.5 billion cost of building a smartphone screen plant for four years, and the US-based tech giant is also the option of the supplier in order to slow down the pace of the repayments.
Reporting Makiko Yamazaki; Editing by David Dolan and Edwina Gibbs