July 12, 2019 / 1:56 AM / 12 days ago

Apple supplier Japan Display secures bailout after funding shortfall

FILE PHOTO: The logo of Japan Display Inc is seen at the company's production line for LCD panels in its factory in Mobara, Chiba prefecture, June 3, 2013. REUTERS/Toru Hanai/File Photo

TOKYO (Reuters) - Japan Display Inc (6740.T) said on Friday that a group led by Chinese investment firm Harvest Group had formally secured additional funding for a previously announced 80 billion yen (£589 million) bailout plan for the screen maker.

Harvest would increase its investment, included a $100 million investment from a JDI customer, Japan Display said. A source previously said that customer was Apple Inc (AAPL.O).

The Japanese company said it planned to hold a shareholders meeting on Aug. 29 to formalise the bailout plan.

Apple’s recent shift away from liquid-crystal displays (LCDs) has triggered a funding crunch for Japan Display, which depended on the U.S. smartphone maker for 60.6% of its revenue in the last financial year ended March.

Harvest has been leading a consortium to keep Japan Display afloat, but Taiwanese screen maker TPK Holding Co Ltd (3673.TW) and financial firm CGL Group dropped out of the process in June.

Japan Display also said that Hong Kong-based activist investor Oasis Management, already part of the bailout consortium, has offered to extend more financing if currency fluctuations result in a shortfall.

Reporting by Ritsuko Ando and Makiko Yamazaki; Editing by Chang-Ran Kim and Stephen Coates

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