Lenders offer Sharp a 210bn yen lifeline

City A.M. Reporter
MIZHUO Financial Group and Mitsubishi UFJ Financial Group, the two main lenders to Sharp, have approved a 210bn yen (£1.6bn) bailout of Japan’s troubled TV maker, sources said yesterday, clearing a major obstacle to firm’s survival.

The two banks have been orchestrating Sharp’s funding plans in exchange for drastic changes at the century-old firm, including selling overseas TV assembly plants and shutting solar panel businesses in Europe and the US.

Sharp, which produces air conditioners, microwave ovens and TVs, expects to lose more than 100bn yen this business year, sources say, savaged by competition from rivals led by Samsung.