Sharp, banks near US$1.7bil bailout deal

TOKYO: Japan’s Sharp Corp and its main banks are set to agree on to a US$1.7bil rescue and restructuring plan that will likely include a promise to split off its ailing smartphone display business, a person involved in the discussions said.

As part of its second major bailout in three years, Sharp’s lenders, Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ, will inject a combined 200 billion yen (US$1.7bil) in a debt-for-equity swap, the source said, declining to be identified as he is not authorised to speak publicly on the matter.