Sharp receives another 200 billion yen financing to ease business pressure

In response to the deterioration of Sharp's operating conditions, it is reported that Sharp's two major creditor banks, Mizuho Finance and Mitsubishi UFJ, are studying and financing the addition of about 200 billion yen for Sharp from August to September.

It is understood that Sharp and the two major creditor banks' short-term debt of about 200 billion yen CP is about to expire. Sharp's two major creditor banks expect to repay the previous CP debt through additional financing, and alleviate Sharp's current operating pressure through capital operation. I hope that Sharp can revitalize its operations.

In March of this year, affected by the lack of Sharp TV business and panel business, Sharp and Taiwan Hon Hai joined hands with the capital business to jointly operate Sharp's LCD panel factory in Handan. Hon Hai also plans to invest 66.9 billion yen in Sharp's main body and hold 9.9% of the shares in Sharp.

However, the good times did not last long. As Sharp’s performance worsened, Sharp’s share price plummeted and the cooperation agreement between Sharp and Hon Hai changed. Hon Hai’s funds were also stranded due to the multiple factors of the agreement and Taiwan. For Sharp, which is in urgent need of funds for business restructuring, it can be considered worse.

It is understood that Mizuho Finance and Mitsubishi UFJ have already implemented about 66 billion yen in financing for Sharp, but since Sharp's investment rating has been cut down on a large scale, it has become very difficult to issue CP financing. Therefore, Mizuho Finance and Mitsubishi UFJ believe that it is extremely urgent to use short-term borrowing funds to repay Sharp’s nearly 200 billion yen CP debt that will expire at the end of August and the end of September.

However, this additional financing was downgraded due to Sharp's investment rating, and the creditor bank was actually financing without guarantee. Therefore, Mizuho Finance and Mitsubishi UFJ considered using a mortgage to finance the guarantee. Sharp may make further restructuring plans due to bank pressure.

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