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Apple supplier Japan Display says 'client' has promised additional support

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Apple supplier Japan Display says 'client' has promised additional support
Japan Display's logo is seen at a display of its products at its headquarters in Tokyo, Japan October 7, 2019. REUTERS/Kim Kyung-Hoon   -   Copyright  KIM KYUNG-HOON(Reuters)
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TOKYO (Reuters) – Apple Inc supplier Japan Display Inc <6740.T> said on Wednesday that concerns about immediate cash shortfall have been resolved as a “client,” which a source familiar with the matter said is Apple <AAPL.O>, has agreed to shorten a payment period.

“I can now say concerns about financing have been resolved,” Minoru Kikuoka, who took the helm of the company in September, told reporters, adding that “most credible business partners” have given assurances.

A source familiar with the matter said the client in question was Apple.

The support comes on top of a deal in which Apple allowed the struggling display supplier to slow the pace of repayment of more than $900 million it owes for the $1.5 billion cost of building a smartphone screen plant four years ago.

Money-losing for the last five years and with its liabilities now exceeding assets, Japan Display desperately needs a capital injection.

(Reporting by Makiko Yamazaki; Editing by David Dolan)

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