Sharp To Seek For A Second Bailout: Nikkei
In what would be its second bailout in three years despite restructuring efforts, Japanese electronics manufacturer Sharp is hoping to raise as much as 200 billion yen ($1.7 billion), most of it through a debt-equity exchange, the Nikkei business daily reported today. In a seperate report, Reuters reports that Sharp is looking to request aid from Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ and plans to meet with the lenders this week.
"We are currently considering various possibilities based on drastic reform, but there are no fact of specific decisions made at this point. The new medium-term management plan is currently reviewed and will be announced around May this year," Sharp said. "There are also reports speculating that Sharp is expecting over 100 billion yen final deficit in the full year earning affected by the underperforming businesses including solar cell business, but there are no such facts, and at this moment, we have no plan to revise our consolidated business forecast of the year ending March 2015," the company added.
In addition to a debt-to-equity exchange, Sharp may close up to four plants, exit its solar panel business and seek funds from other electronics firms such as Samsung, which holds a 3 percent stake, domestic media said.
Fierce competition from Apple, Samsung Electronics as well as cheaper Chinese makers has hammered Japan's once mighty consumer electronics firms. On the other hand, rivals like Panasonic and Sony have made progress in turning around some operations.