Japan Display signs a $ 738 million bailout deal, including $ 100 million from Apple



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By Mikey Campbell
Thursday, July 11, 2019, 10:15 pm (1:15 am ET)

Japan Display, an American LCD manufacturer, announced Friday that a consortium led by the Chinese group Harvest Group had successfully raised the funds needed to run a 80 billion yen rescue plan (about $ 738 million), of which $ 100 million would come from Apple.

iPhone XR

After months of negotiations, Harvest has decided to increase its investments in JDI to reach the 80 billion goal already achieved, the report reports. Reuters.

Harvest would have been willing to invest nearly $ 500 million to keep JDI afloat. In June, JDI confirmed the amount, adding that only one customer had accepted a $ 100 million injection as part of Harvest's offer.

Previous reports have identified Apple as the mystery investor of JDI. Apple is JDI's largest customer, the Giant Technology's iPhone LCD screen orders representing approximately 60% of JDI's revenue for fiscal year 2018.

Apple was originally expected to make this investment via TPK Holding, a Taiwan-based screen maker, in talks to inject $ 230 million into the bailout fund. TPK is withdrawn from the transaction in June.

In parallel with Harvest, Hong Kong based Oasis Management will invest between $ 150 million and $ 180 million. According to today's report, Oasis has offered to provide additional funds to offset potential currency fluctuations. JDI plans to formalize the bailout at a shareholder meeting in August, the report says.

JDI is a joint venture that combines the Hitachi, Sony and Toshiba screens to better compete with the Korean powers Samsung and LG Display. Although the company had some early success, it has been wavering in mbadively investing in the production of LCDs and largely ignoring a broader industry trend towards OLED panels.

Apple became closely tied to JDI after cashing a large sum to help the billboard maker build a $ 1.5 billion panel plant in 2015. JDI now finds itself in arrears and a deficit funding from the fact that the manufacturer of iPhone and others reduce their LCD orders before becoming OLED.

In addition to the supposed $ 100 million investment, Apple has agreed to slow down JDI's debt repayment schedule and potentially increase orders in order to stabilize the company's finances. Reports also suggest that Apple will award JDI some of the upcoming Apple Watch OLED panel orders this year as the company strives to move away from producing LCD technology.

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