Mizuho approves new loan plan for Sharp -source
TOKYO, Sept 27 |
TOKYO, Sept 27 (Reuters) - Sharp Corp's creditor Mizuho Corporate Bank agreed to a plan to extend the cash-strapped display maker a total 210 billion yen ($2.7 billion) of fresh financing by a group of lenders, a source briefed on the matter said on Thursday.
Another main lender of the Osaka-based electronics company, Bank of Tokyo-Mitsubishi UFJ (BTMU), is also expected to approve the plan later in the day, sources said, clearing a major hurdle for Sharp's survival efforts.
The new financing will add to 150 billion yen of loans extended to Sharp in August. The company has to pay as much as 360 billion yen of short-term commercial paper over the coming months.
Of the total 360 billion yen of loans, the two main lenders are planning to invite other lenders to shoulder half of the amount.
Earlier this week, Sharp submitted to the banks a business plan that pledged it would return to profit in the year starting April 1 by trimming workers, selling overseas TV assembly plants and offering to shut its solar business in the United States and Europe.
Mizuho Corporate Bank is a unit of Mizuho Financial Group and BTMU is part of Mitsubishi UFJ Financial Group .
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