Sharp Corp, the Japanese TV maker cutting more than 10,000 jobs as it tries to return to profit, secured ￥360 billion (US$4.6 billion) of funding, according to a statement to the Tokyo Stock Exchange yesterday.
Sharp is to get a ￥180 billion loan from Mizuho Corporate Bank Ltd and the Bank of Tokyo-Mitsubishi UFJ Ltd (MUFJ), according to the statement. Another ￥180 billion in the form of a revolving credit facility due in June is also to be extended to Osaka-based Sharp, the statement said.
Reeling from record losses and in talks to sell a stake to Taiwan’s Hon Hai Group (鴻海), the maker of Aquos televisions submitted cost-cutting proposals to the banks on Monday, two people with knowledge of the matter said earlier this week.
The company had ￥706 billion of short-term debt and ￥314 billion in long-term debt with cash and near-cash of ￥218 billion at the end of June.
Both loans have a claim on Sharp’s assets and the revolver replaces a ￥150 billion credit arrangement put in place last month, a person familiar with the matter said on Thursday.
Sharp used a stake in Pioneer Corp and its company headquarters as collateral for the ￥150 billion loan, Tokyo-based spokeswoman Miyuki Nakayama said on Thursday.
Japan’s biggest maker of liquid-crystal panels has already put up its Osaka headquarters and some factories as debt collateral, Sharp said Sept. 6. Its credit rating has been cut to junk by Standard & Poor’s and Moody’s Investors Service.
Sharp reduced its stake in Pioneer to 9.2 percent from 14.3 percent and pledged 15 million Pioneer shares each to Mizuho and Bank of Tokyo-Mitsubishi UFJ as collateral, according to a Sept. 3 filing to Japan’s Finance Ministry.