Report: Creditor banks plan $1.5 billion in new loans to Sharp

• Tweet

TOKYO, May 8 (UPI) -- Japanese electronics maker Sharp Corp. is likely to get 150 billion yen in new loans from its main creditor banks, sources told Kyodo News Wednesday.

The report, quoting sources close to the developments, said Mizuho Corporate Bank and the Bank of Tokyo-Mitsubishi UFJ had earlier planned on a 100 billion yen additional credit line but plan to raise it to 150 billion yen ($1.51 billion) to help the Osaka-based company, a leading maker of liquid crystal displays, rebuild its business and recover earnings at the earliest.

Additionally, the Bank of Tokyo-Mitsubishi UFJ plans to send Yoshihiro Hashimoto, president of Mitsubishi UFJ Capital Co., to serve as an executive-level officer at Sharp, the report quoted the sources as saying.

Kyodo said Sharp plans to use the funds under the credit line to repay some of its 200 billion yen ($2.018 billion) in convertible debt due at the end of September.