Apple Supplier Japan Display Reaches $930 Million Bailout Agreement With Ichigo

Apple Supplier Japan Display Reaches $930 Million Bailout Agreement With Ichigo

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Struggling Apple supplier Japan Display has reached a deal with Ichigo Asset Management to receive up to 100.8 billion yen ($930 million USD) in bailout funding, reports Reuters.

The Japanese investment manager will effectively take control of the company, replacing the Japanese government backed INCJ fund as the largest shareholder.

In an attempt to help Japan Display stay afloat, Apple has agreed to shorten payment periods, relax terms for debt repayment, and put up $200 million in funding. This has reassured other investors including Ichigo's CEO Scott Callon who said it was the biggest reason for deciding to invest in the company.

“I’ve spoken to Japan Display’s clients and heard their confidence in its technologies,” said Callon at a press conference.

Reuters also reports that Apple is leading talks for the potential sale of an idled Japan Display factory to Sharp. Japan Display borrowed money from Apple to build the $1.5 billion plant just four years ago. It still owes the Apple over $800 million.

Ichigo will buy 50.4 billion yen of preferred shares of Japan Display by late March, giving it a 44.26% stake in the company. It's also offering to buy an additional 50.4 billion yen of preferred shares at a later date, which would bring its stake to 70.43% when converted to common shares. Callon will join Japan Display as its chairman.

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Apple Supplier Japan Display Reaches $930 Million Bailout Agreement With Ichigo

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