Sat, Sep 29, 2012 - Page 15 News List

Sharp secures funding from Mizuho and MUFJ

Bloomberg

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.

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