What you need to know
- "An overseas customer" named by sources as Apple has plowed another $200 million into Japan Display.
- The ailing company has been on the end of several bailouts despite poor financial performance.
- The company now owes Apple more than $800 million.
"An overseas customer" named by sources as Apple has plowed another $200 million into its ailing supplier Japan Display, despite being owed over $800 million already.
As reported by Reuters:
TOKYO (Reuters) - Japan Display said on Tuesday it has finalised a deal to raise $200 million from "an overseas customer," which sources have said is Apple.
The $200 fund will come in the form of the customer purchasing equipment at Japan Display's main smartphone screen factory in central Japan, the company said in a statement.
As Japan Display owed Apple more than $800 million as of last year for the $1.5 billion cost of building the plant, the fund to be raised would be used for repayment, the sources have said.
Back in January, it was reported that Japan Display Inc. had received a bailout of around $925 million, however, the company later denied that this had been finalized. The company has reported 11 consecutive quarterly losses and owes Apple over $800 million in cash that was used to construct a $1.5 billion plant in Japan. It emerged last year that an executive of the company had embezzled over $5 million from the company between 2014 and 2018, casting the companies financial records into further doubt. Back in September Apple poured another $180 million into the company. The manufacturer has reportedly been hit by faltering display sales and restructuring costs which have decimated its bottom line.