Sharp mortgage facilities in exchange for money to survive in the industry
Sharp has long been showing a financial statement but unstable, so at the risk of calling into question its continuity in the industry, the company has reached an agreement with two major economic groups to mortgage all its factories and infrastructure, as collateral in exchange for a large cash Loan of $2,000 million that the company will use to stay afloat and stay alive in the market.
It happens that in 2011, Sharp recorded huge financial losses in the order of USD $4,700 million, so Sony ended the relationship they had and Sharp began managing the sale of some of its facilities to Foxconn , after revealing that keep a debt of no less than USD $16,000 million.
However, Foxconn began to make the difficult , with its Chairman Terry Gou stretching the process to the end, surely, to see Sharp fall and then buy it when it is at a lower price than today. Against this, Sharp’s move makes sense: the injection of money that comes through the mortgage will keep them afloat and will be the last chance we have to create new product lines and renewed business model, seeking return to profitability. But if they fail, they will lose everything.
Link: Sharp Mortgages Nearly Everything to Stay in Business (Geekosystem)Tags: Bankruptcy, crisis, foxconn, Loan, loans, money, mortgage, sales, Sharp