Japan Display Clinches 100-B.-Yen Bailout Deal
Tokyo, Jan. 31 (Jiji Press)--Ailing Japan Display Inc. <6740> said Friday that it has reached final agreement on a deal to receive up to 100.8 billion yen in financial assistance from Ichigo Asset Management Ltd.
The maker of small and midsize liquid crystal display panels eventually sealed the deal after confusion over its bailout scheme. Japan Display plans to gain approval for the deal at an extraordinary meeting of its shareholders on March 25.
Ichigo Asset will then underwrite 50.4 billion yen of Japan Display preferred shares with voting rights. It will provide another 50.4 billion yen in April or later depending on Japan Display's demand for funds while consulting with the company.
The asset management firm will become Japan Display's top shareholder with some 44 pct of the voting rights. Its chief executive officer, Scott Callon, will assume the post of Japan Display chairman.
At a press conference on the day, Callon stressed that he is sure of Japan Display's revival as the company has world-leading technologies.
[Copyright The Jiji Press, Ltd.]