Japan Display in Talks for $704m Bailout

Japan Display Inc is in advanced talks to receive a bailout amount of about 75 billion yen ($704.49 million) from Innovation Network Corp of Japan, a government-backed fund and the display maker’s largest shareholder. The two companies are looking at options, including the issuance of subordinated bonds by Japan Display to INCJ, Reuters reported, citing people with knowledge of the matter. INCJ owns a 35.58% stake in Japan Display, according to Thomson Reuters data. Japan Display’s banks are also considering additional support for the company, the Journal reported. No final decision has been made yet, according to the report. INCJ was not immediately available for comment and Japan Display could not be immediately reached. Japan Display said on Wednesday it was slashing 30% of its workforce, or 4,700 jobs, to improve profitability but added that concerns about its cash position have eased as it is seeing strong demand for its screens from Chinese smartphone makers. Japan Display was formed in 2012 by combining the display units of Hitachi Ltd., Sony Corp and Toshiba Corp.