Foxconn, formally known as Hon Hai Precision Industry Co., has reached an agreement with Sharp Corp.’s banks to extend a 300 billion yen ($2.7 billion) credit line to the troubled Japanese electronics major, Bloomberg reported, citing Japanese newspaper Yomiuri Shimbun, Saturday.
The agreement will reportedly allow Sharp to borrow from its lenders Mizuho Financial Group Inc. and Mitsubishi UFJ Financial Group Inc., if it suffers losses from potential liabilities or needs new investments. However, the banks may wait for a month for Sharp’s repayment of about 510 billion yen ($4.57 billion) in loans due at the end of March if talks with Hon Hai are extended. read more here