Japan Display gets debt relief, says consortium to formalise bailout (updated)

TPK Holding Co

30/05/2019 10:17

(Recasts with Japan Display announcement)
    By Makiko Yamazaki
    TOKYO, May 30 (Reuters) - Japan Display Inc  6740.T  said on
Thursday a Chinese-Taiwanese consortium will formalise its
decision to invest in it by June 14, after client Apple Inc
 AAPL.O  agreed to wait for money owed and a government-backed
fund offered to waive debt.
    The deal will unlock a lifeline of up to 80 billion yen
($729 million) for the smartphone screen maker, hit by slowing
sales of Apple's iPhones and a late shift to organic
light-emitting diode (OLED) screens.
    The consortium, which includes Taiwanese flat screen maker
TPK Holding Co Ltd  3673.TW  and Chinese investment firm Harvest
Group, will replace Japanese government-backed fund INCJ as
Japan Display's biggest shareholder with a 49.8% stake.
    INCJ's stake will fall to 12.7% from 25.3%.
    The consortium reached a basic agreement on the deal in
mid-April but delayed formalising it to reassess Japan Display's
prospects. The reassessment was prompted by a change in Japan
Display's financial situation, a person with direct knowledge of
the matter told Reuters at the time.  urn:newsml:reuters.com:*:nL4N22P1WH
    Soon after the delay, INCJ offered to forgive 44.7 billion
yen in debt in return for Japan Display's 27.2% stake in OLED
panel maker JOLED, Japan Display said on Thursday.
    Reuters could not reach INCJ for immediate comment.
    Japan Display also on Thursday said "a client" to which it
owed money had agreed to halving the pace of repayment for two
years.
    People with direct knowledge of the matter previously told
Reuters that Apple fronted most of the $1.5 billion cost of
building a Japan Display plant four years ago, with the Japanese
firm agreeing to repay Apple with a percentage of screen sales.
 urn:newsml:reuters.com:*:nL3N2191Q5
    A Japan Display executive in April said the firm still owed
its client about 100 billion yen, without naming Apple.
    Apple did not respond to an emailed request for comment.
        
($1 = 109.7200 yen)

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Chinese group to delay bailout funding for Apple supplier Japan
Display     urn:newsml:reuters.com:*:nL4N22P1WH
FOCUS-Apple's iPhone struggles unravel ambitions of Japan
Display     urn:newsml:reuters.com:*:nL3N2191Q5
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 (Reporting by Makiko Yamazaki; Editing by Christopher Cushing)
 ((Makiko.Yamazaki@thomsonreuters.com; 81-3-6441-1039;))