Sharp’s Banks to Extend Lifeline

There has been yet more speculation about Sharp’s future after the company met with its main lenders last week. Reports suggest that Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ will each receive ¥100 billion ($837 million) of preferred shares in exchange for the same amount of debt, on condition that Sharp makes job cuts, estimated to be around 5,000 staff, and other restructuring efforts.

This is the second time that Sharp’s major banks have stepped in to help save Sharp, having also extended a committed line of credit to the company in 2013, after Sharp reported the worst loss in the company’s 100 year history. At the time, the banks also appointed two directors to the company to oversee a reorganisation of the business.

Sharp will release its mid-term management plan and end of year financial results on 14th May.