Japan Display Inc. said Wednesday it had formally ended talks with a Chinese-Taiwanese consortium on a bailout plan that has effectively been stalled since September.
The struggling display supplier for Apple Inc. said the group led by Chinese Harvest Tech Investment Management Co. did not provide financial aid by the deadline of Dec. 31, despite an agreement in August under which the consortium had pledged to offer up to ¥80 billion ($738 million).
Japan Display said it would focus on negotiations for a new rescue plan with Japanese private fund Ichigo Asset Management Ltd., after unveiling a plan in December to receive a capital injection of up to ¥90 billion from the new domestic sponsor.
The panel-maker said it aims to complete the fresh bailout in February or March after finalizing all negotiations with Ichigo later this month.
Japan Display was established in 2012 through the merger of the operations of Sony Corp., Hitachi Ltd. and Toshiba Corp. with support from state-backed fund INCJ Ltd.
The cash-strapped company incurred a net loss for the fifth straight year in the year ended March 2019 due to slumping demand for smartphone displays.