Sharp Corp. and its main banks are set to agree on Thursday to a $1.7 billion rescue and restructuring plan that will likely include a promise to split off its ailing smartphone display business, a person involved in the discussions said.
As part of its second major bailout in three years, Sharp's lenders, Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ, will inject a combined ¥200 billion ($1.7 billion) in a debt-for-equity swap, the source said, declining to be identified as he is not authorized to speak publicly on the matter.
The loss-making company will also pledge to scale back its North American TV operations and cut around 5,000 jobs, or 10 percent of its global workforce, the source said.