Japan Display Inc will receive financial support from Apple and other clients, following the recent withdrawal of China's Harvest Tech Management Co from a scheduled capital injection plan.
The ailing display maker said the U.S. tech giant will speed up making payments to Japan Display for its products. The move has effectively helped it secure up to 40 billion yen ($370 million) since November.
"..the customer (Apple) from next month will provide JDI with financial support that includes a shortening of payment terms, as was stated in their letter. In addition, other business partners will also give us supports by easing their respective payment terms. As a result, we now expect to obtain up to 40 billion yen of cash flow improvement effect" JDI said.
Japan Display had agreed to receive a capital injection of up to 80 billion yen from a consortium of China's Harvest Tech Management Co and Hong Kong's Oasis Management Co.
But Harvest last month withdrew from the framework to rescue Japan Display.
Japan Display said last month that Apple would provide it with $200 million, doubling the amount it previously announced.
In the April-June period, Japan Display logged a group net loss of 83.27 billion yen and slipped into negative net worth amid falling demand for smartphones.
In the last fiscal year that ended in March, the company incurred a group net loss for the fifth consecutive year, hit by declining demand of the Apple iPhone.
Japan Display was established in 2012 through the merger of the display operations of Sony, Hitachi and Toshiba with support from the state-backed fund, INCJ Ltd.