Sharp Corp. has effectively been given the green light to receive ¥200 billion ($1.7 billion) in financial support from its two main creditor banks on condition it engages in more drastic restructuring, sources close to the matter said Thursday.
Mizuho Bank and the Bank of Tokyo-Mitsubishi UFJ will help the struggling electronics maker to increase its capital through a debt-for-equity swap in their first full-fledged financial bailout since 2013, the sources said.
The Osaka-based company, whose solar cell and television divisions are in the red, estimates it will incur a group net loss of around ¥200 billion for the business year ended March 31.