Sharp to submit revival plan

Tokyo:

Sharp Corp, the Japanese electronics maker renegotiating a stake sale to Foxconn Technology Group, said it plans to submit a revival plan to banks this month as it seeks to raise funds to repay debt.

The company declined to comment on details of the plan, spokeswoman Miyuki Nakayama said by phone today. Sharp’s main lenders plan to arrange as much as 300 billion yen ($3.8 billion) in financing for Sharp with or without Foxconn’s capital injection, Reuters reported earlier yesteray.

The electronics maker, trying to raise cash after widening its loss forecast eightfold last month, mortgaged most of its domestic properties including its Osaka headquarters and some factories, it said yesterday. The company is cutting 5,000 jobs as part of a restructuring amid slumping demand for its TVs.

Nakayama and Simon Hsing, a spokesman for Taipei-based Foxconn’s Hon Hai Precision Industry Co, declined to comment on the Reuters report.

Sharp put up properties as collateral as it sought as much as 150 billion yen in loans from Japan’s Mizuho Corporate Bank Ltd and Bank of Tokyo-Mitsubishi UFJ Ltd, it said yesterday.

Sharp’s shares rose 3 per cent to 206 yen at the close of trading in Tokyo, reversing earlier losses.