Sharp's banks considering additional aid as part of Foxconn deal: source

[TOKYO] Sharp Corp's two main banks are set to lower the interest rates on a combined 700 billion yen (S$8.6 billion) in loans to the Japanese display maker as part of a planned takeover by Taiwan's Foxconn, a source with direct knowledge of the plan said.

The core banking units of Mitsubishi UFJ Financial Group Inc and Mizuho Financial Group Inc also plan to extend the deadline for repayment of a combined 510 billion yen in syndicated loans due at the end of the month, the source said.

The source declined to be identified because the plan has not been officially announced.

The banks are also considering an additional commitment line for the troubled company, the source told Reuters, as it seeks to restructure under Foxconn, formally known as Hon Hai Precision Industry Co.

Representatives for Mitsubishi UFJ and Mizuho declined to comment.

REUTERS