Pioneer to Receive Financial Assistance from Hong Kong Firm

Economy

Tokyo, Sept. 12 (Jiji Press)--Struggling Japanese car electronics maker Pioneer Corp. <6773> said Wednesday that it will receive financial assistance from Hong Kong-based investment firm Baring Private Equity Asia.

Pioneer will accept an equity investment of between 50 billion yen and 60 billion yen from BPEA by the end of this year.

The Japanese company will also receive a bridge loan of 25 billion yen from BPEA on Tuesday to help repay debts due late this month.

Pioneer has faced financial difficulty due to ballooning product development costs. In a quarterly financial statement released last month, the company noted uncertainty about its ability to continue as a going concern.

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