Struggling Sharp Corp. has offered its headquarters and a key factory as collateral for 150 billion yen ($1.9 billion) in new loans, The Asahi Shimbun learned on Sept. 5.
Specifically, the rare move for a major Japanese electronics maker involves the building and land of Sharp’s headquarters in Osaka; the building and land of the adjacent Tanabe Building; the buildings and land of the Kameyama Plant in Kameyama, Mie Prefecture; and other company assets.
According to registration documents, Sharp’s main creditor banks, Mizuho Corporate Bank and the Bank of Tokyo-Mitsubishi UFJ, placed a mortgage on those properties for providing loans of up to 75 billion yen each to Sharp.
Those registrations are dated Aug. 31, the day when Sharp and Hon Hai Precision Industry Co. were expected to agree on a review of the Taiwanese company’s investment plan. However, no agreement has been reached.
Sharp previously obtained funds directly from the markets by issuing corporate bonds and commercial paper and through other means. Based on its name recognition and strong earnings, Sharp had previously gained loans from banks without using its properties as collateral.
But the rapid deterioration in Sharp’s finances led to a decline in its creditworthiness.
The company posted a net loss of 376 billion yen for fiscal 2011.
- « Prev
- Next »