TOKYO (Archyde.com) – Banks are making final adjustments to provide 1.4 trillion yen in loans to Japan Industrial Partners (JIP), which has obtained preferential negotiation rights in Toshiba’s reconstruction plan, it was learned. . The company is expected to submit documents certifying the loan to JIP within the month. Two people familiar with the matter said.
The 1.4 trillion yen scale includes 200 billion yen of working capital required after the acquisition.
According to multiple sources, Toshiba’s main banks, Mizuho Bank, Sumitomo Mitsui Banking Corporation, and semi-mainstay Sumitomo Mitsui Trust Bank, are planning to lend more than 1 trillion yen in total. Mitsubishi UFJ Bank and Aozora Bank will also participate.
Mizuho, Sumitomo Mitsui, Sumitomo Mitsui Trust, Mitsubishi UFJ and Aozora declined to comment. Toshiba said, “As a general rule, we cannot provide information about candidates, including joint investors, due to concerns that it may impair fair process management.” JIP has yet to comment.
Originally, Toshiba had requested JIP to submit a “commitment letter” by November 7, certifying that the bank had indicated its intention to provide the loan. The bank decided that it would not be possible to decide on a loan in the situation where there was no prospect of securing sufficient investment, but discussions with JIP progressed this month, and each bank entered the stage of narrowing down the burden ratio. was
The acquisition of Toshiba will require a total of more than 2.2 trillion yen in funds, and the plan was to cover it with investments from private companies such as Orix and Rohm, bank loans, preferred shares and subordinated loans.
The final purchase price could change depending on market conditions, two of the people said.
With the difficult bank financing decided, the focus will shift to whether Toshiba will accept JIP’s restructuring plan. A special committee made up of outside directors will consider whether or not to accept the proposal, and the board of directors will make the final decision after receiving the proposal.