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Apple supplier Japan Display, will lose in the Chinese funds are, for the very survival in jeopardy

TOKYO (Reuters) – Apple Inc’s (AAPL.(O) the vendor, in Japan Display Inc (6740.(T), said on Thursday that the Chinese firm the Harvest Group is to pull out a bailout for the cash-strapped smartphone display maker, is to increase the likelihood of the 80-billion-yen ($743 million) is going to be torn down.

FILE PHOTO: a Japan Display Inc. logo is displayed at the company headquarters in Tokyo, Japan, on August 9, 2016. REUTERS/Kim Kyung-Hoon/File Photo

The removal of the Crop, which had been provided for injection of three-quarters of the bailout, which threatens the very survival of Japan is Indicating that it is affected by Apple’s slowing iPhone sales and a late shift to the organic light-emitting diode (OLED) display.

But Minoru Kikuoka, Japan Display chief executive officer (ceo), said at a news conference that there were no concerns over an immediate cash crunch, thanks to the loans extended by the Japanese government-backed fund INCJ, is the second-largest shareholder.

Harvest has decided to pull out because of disagreements with the other members of the investor group in relation to corporate governance, Japan Display said. The Japanese company is looking for new investors to replace the Chinese fund, while holding discussions with the Crop for the purpose of receiving the promised investment, it will be added.

In the meantime, a major Japan Display, the client, the sources say, Apple is planning to double its planned investment to $200 million, and Japan Display was able to find other investors, in part to replace of the Crop at the end of this year, Japan Display said.

Apple in Japan, was not immediately available for comment.

Apple is very good for 60.6% of Japan Display’s revenue in the last fiscal year that ended in March. 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.

The Hong Kong-based activist investor Oasis Management is still sticking to its plans to contribute to the $150-180 million range. In addition, it is to be a leading supplier, and other private equity funds showing an interest in joining the deal, Kikuoka said.

The investment would give the investor group has a 49.8% stake in Japan Display, with the replacement of the Japanese government-backed fund INCJ and Japan Display ” s second-largest shareholder.

Japan Display, the first agreement was reached on the bailout deal, the Chinese group in April, but was forced to make a change to the structure, such as some of the members dropped out after the audits in Japan, the Display of the peoplesoft finance system.

Japan Display in August, it reported a tenth consecutive quarterly loss, and recorded a negative net worth, with liabilities exceeding assets by a 77.2 billion yen.

Japan Display was formed in 2012 by combining the liquid-crystal-display businesses of Hitachi Ltd., 6501.T) To Toshiba Corp’s (6502.T) and Sony Corp (6758.(T) in the government-brokered deal to me.

Reporting by Takashi Umekawa and Makiko Yamazaki; Editing by Clarence Fernandez, Sherry Jacob-Phillips and Alexandra Hudson

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