Sharp Corp. (6753) may turn to the last resort of Japanese companies facing potential bankruptcy -- the government.
With 200 billion yen ($2.5 billion) of convertible bonds maturing in 2013, Sharp may have to ask the state Enterprise Turnaround Initiative Corp. or Innovation Network Corp. of Japan for money, said Fumiaki Sato, co-founder of Sangyo Sosei Advisory Inc., a turnaround advisory firm in Tokyo. Sharp has failed to win a planned 67 billion-yen equity investment from billionaire Terry Gou’s Foxconn Technology Group.
Sharp hemorrhaged 103 billion yen in cash from operations in the first half of the year as Japan’s electronics industry struggles with dwindling demand and competition from Samsung Electronics Co. (005930) A bailout may follow the precedent set by the government rescue of Japan Airlines Corp. two years ago that wiped out shareholders while
http://www.bloomberg.com/news/2012-11-04/sharp-seen-seeking-government-bailout-after-record-loss-forecast.html
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
| 