Concerns over the outlook for struggling Sharp Corp. are deepening amid the uncertainty over its capital tieup deal with Taiwanese partner Hon Hai Precision Industry Group.
Hon Hai, better known as Foxconn, had hoped to conclude a deal with the electronics giant by the end of August, but founder and Chairman Terry Gou reportedly left for Taiwan late Thursday following negotiations in Japan without finalizing a settlement.
Analysts said that until the final deal is struck on the tieup, it will not only remain unclear when and how much cash the ailing manufacturer can raise, but also overshadow the prospect of Sharp being granted hundreds of billions of yen in additional loans from its main creditor banks — Mizuho Corporate Bank and Bank of Tokyo Mitsubishi UFJ — to reduce its massive debt burden.