Japan Display Inc. is granted $100 million as part of a bailout package from Apple Inc. The news comes after the Japanese firm has been struggling after numerous investors left the company.
One Hurdle After Another
In the past five years, Japan Display continued to experience a decline in profits, states Bloomberg. Based on the news site, the corporation dealt with a shift in technology, a lower demand for their services, and a multitude of investors leaving the company.
According to the report released by Reuters, the primary investor which left Japan Display struggling is Apple Inc. itself. As Apple switched from using liquid-crystal displays (LCDs) in its models after the low sales of iPhone XR.
The decision to pursue a bailout package comes after the Japanese company’s decision to build a $1.5 billion plant four years ago, reports Reuters. The Japanese firm is slated to pay over $900 million.
The Japanese firm has reportedly been pushing for a bailout deal with a Chinese-Taiwanese company. However, the firm in question is still in the process of assessing the profitability and assets of Japan Display.
Some of the companies that withdrew their support for the $1.1 billion rescue plan include TPK Holding Co. from Taiwan, Cosgrove Global Ltd., and Topnotch Corporate Ltd.
Despite the succession of withdrawal offers, the Japanese company remains hopeful that some possible investments will come through. As of writing, the firm is currently in the talks with Harvest Tech Investment Management Co. and Oasis Management Co, notes Bloomberg.
Apart from this, the corporation also received pledges amounting to $500 million from Harvest. Should Oasis Management Co. push through with its deal, the Japanese company would receive another $150 million.
In addition to the $100 million grant from Apple Inc., Japan Display also received a pardon from its 44.7-billion-yen debt to the INCJ fund, state Reuters.