Business / Corporate

Pioneer to receive loans from Hong Kong fund amid business turnaround

Kyodo

Pioneer Corp. plans to receive tens of billions of yen in loans from the Hong Kong-based investment fund Baring Private Equity Asia as it seeks to turn around its business, a source close to the matter said Tuesday.

The electronics manufacturer is seeking the assistance as it faces a deadline of the end of this month to pay back debts of ¥13.3 billion. The maker of audio products and car navigation systems also needs to compile drastic business reform measures as requested by its main creditor banks.

Pioneer, which posted group net losses in the past two business years and is expected to be in the red this year, has floated ideas including a capital infusion or capital alliance with a rival company as it seeks to get back on its feet.

But with its mainstay navigation system struggling, Pioneer has yet to conclude an agreement. The company will also need to repay loans of ¥4.4 billion in December.