Apple Inc supplier and Japan Display Inc said on Thursday that Chinese investment firm Harvest Group would withdraw from a bailout of the cash-strapped smartphone screen maker, increasing the chance of the 80 billion yen ($743 million) deal collapsing.

The pullout of Harvest, which had offered to inject three-quarters of the bailout, threatens the survival of Japan Display, which has been hit by Apple's slowing iPhone sales and a late shift to organic light-emitting diode (OLED) screens.

But Minoru Kikuoka, Japan Display's chief financial officer, said at a press briefing there were no worries about an immediate cash crunch, thanks to loans extended by Japanese government-backed fund INCJ, its biggest shareholder.

Harvest decided to pull out due to disagreements with other members of the investor group over governance, Japan Display said. The Japanese company will look for new investors to replace the Chinese fund while keeping up talks with Harvest with the aim of receiving promised investment, it added.

Meanwhile, a major Japan Display client, which sources said is Apple, intends to double its planned investment to $200 million, if Japan Display could find other investors to replace Harvest by the end of this year partially, Japan Display said.

Apple Japan was not immediately available for comment.

Apple accounted for 60.6 per cent of Japan Display's revenue in the last financial year ended March. Japan Display still owes Apple nearly $900 million for the $1.5 billion cost of building a smartphone screen plant four years ago.

Hong Kong-based activist investor Oasis Management is still sticking with its plans to contribute $150-180 million. In addition, a major supplier and other private equity funds are showing interest in joining the deal, Kikuoka said.

The investment would give the investor group a 49.8 per cent&nbsp;stake in Japan Display, replacing Japanese government-backed fund INCJ as Japan Display's biggest shareholder.

Japan Display first agreed on the bailout deal with the Chinese group in April, but was forced to change the structure as some members dropped out after making checks on Japan Display’s financials.

Japan Display in August reported a tenth consecutive quarterly loss and logged a negative net worth, with liabilities exceeding assets by 77.2 billion yen.

Japan Display was formed in 2012 by combining the liquid-crystal display businesses of Hitachi Ltd Toshiba Corp and Sony Corp in a government-brokered deal.

Apple Inc supplier and Japan Display Inc said on Thursday that Chinese investment firm Harvest Group would withdraw from a bailout of the cash-strapped smartphone screen maker, increasing the chance of the 80 billion yen ($743 million) deal collapsing.

Apple Inc supplier and Japan Display Inc said on Thursday that Chinese investment firm Harvest Group would withdraw from a bailout of the cash-strapped smartphone screen maker, increasing the chance of the 80 billion yen ($743 million) deal collapsing. The pullout of Harvest, which had offered to inject three-quarters of the bailout, threatens the survival of Japan Display, which has been hit by Apple's slowing iPhone sales and a late shift to organic light-emitting diode (OLED) screens. But Minoru Kikuoka, Japan Display's chief financial officer, said at a press briefing there were no worries about an immediate cash crunch, thanks to loans extended by Japanese government-backed fund INCJ, its biggest shareholder. Harvest decided to pull out due to disagreements with other members of the investor group over governance, Japan Display said. The Japanese company will look for new investors to replace the Chinese fund while keeping up talks with Harvest with the aim of receiving promised investment, it added. Meanwhile, a major Japan Display client, which sources said is Apple, intends to double its planned investment to $200 million, if Japan Display could find other investors to replace Harvest by the end of this year partially, Japan Display said. Apple Japan was not immediately available for comment. Apple accounted for 60.6 per cent of Japan Display's revenue in the last financial year ended March. Japan Display still owes Apple nearly $900 million for the $1.5 billion cost of building a smartphone screen plant four years ago. Hong Kong-based activist investor Oasis Management is still sticking with its plans to contribute $150-180 million. In addition, a major supplier and other private equity funds are showing interest in joining the deal, Kikuoka said. The investment would give the investor group a 49.8 per cent stake in Japan Display, replacing Japanese government-backed fund INCJ as Japan Display's biggest shareholder. Japan Display first agreed on the bailout deal with the Chinese group in April, but was forced to change the structure as some members dropped out after making checks on Japan Display’s financials. Japan Display in August reported a tenth consecutive quarterly loss and logged a negative net worth, with liabilities exceeding assets by 77.2 billion yen. Japan Display was formed in 2012 by combining the liquid-crystal display businesses of Hitachi Ltd Toshiba Corp and Sony Corp in a government-brokered deal.

Apple supplier Japan Display loses out on Chinese funds, survival at risk

Japan Display said Wednesday it would slash 3,700 jobs, or about 30 per cent of its workforce, as the struggling smartphone screen maker&#39;s chief executive warned it was the &quot;last chance&quot; for a turnaround.

Citing intense competition, the Tokyo-based company said it would cut 3,500 positions at overseas assembly plants and another 240 jobs from its payroll in Japan.

The job cuts, which represent nearly 30 per cent of the 13,100-strong workforce, are expected to save 50 billion yen ($455 million) annually, it said, adding that total restructuring costs would be about 170 billion yen.

Japan Display, born out of the 2012 merger of the liquid crystal display divisions of Hitachi, Toshiba, and Sony, has been losing money for years as it lagged behind its foreign rivals while the industry shifted to new technologies.

&quot;We find ourselves in a very regrettable situation,&quot; CEO Nobuhiro Higashiiriki told a press briefing.

&quot;Our biggest task is to build a management system that generates profits by keeping in mind that this is our last chance to restructure,&quot; he added.

Earlier Wednesday the company said it must cut the cost of surplus production capacity.

&quot;Therefore, JDI has determined that it must overhaul its manufacturing system to bring it in line with a changing market and reduce the level of fixed costs,&quot; it said in a statement.

Wednesday&#39;s jobs announcement came as the firm logged a net loss of 31.5 billion yen in the April-June period, nearly three times higher than its shortfall in the same quarter a year earlier.

The group also expects to book a full-year operating loss due to heavier development costs to cope with growing demand for light-emitting OLED displays.

The company was slow to enter the market for OLED screens, which are more flexible than LCD screens and boast a sharper image.

&quot;We have decided to make a strategic change as we would have no future in the smartphone business without OLED,&quot; the firm&#39;s CEO said.

The group is testing a new OLED panel but mass production will not begin until 2019, he added.&nbsp;

South Korea&#39;s Samsung is leading in OLED mass production, with another South Korean group, LG, trying to catch up. &nbsp;

OLED screens are increasingly becoming the preferred choice in high-end smartphones and Apple is rumoured to be planning a switch to OLED technology for its new iPhone, which is being launched this year.

Japan Display, which has factories in Japan and elsewhere in Asia, supplies screens to Apple and China&#39;s Huawei.

Public-private Innovation Network of Japan is its top shareholder with a stake of more than one-third.

The job cuts, which represent nearly 30 per cent of the 13,100-strong workforce, are expected to save 50 billion yen ($455 million) annually

Japan Display said Wednesday it would slash 3,700 jobs, or about 30 per cent of its workforce, as the struggling smartphone screen maker's chief executive warned it was the "last chance" for a turnaround. Citing intense competition, the Tokyo-based company said it would cut 3,500 positions at overseas assembly plants and another 240 jobs from its payroll in Japan. The job cuts, which represent nearly 30 per cent of the 13,100-strong workforce, are expected to save 50 billion yen ($455 million) annually, it said, adding that total restructuring costs would be about 170 billion yen. Japan Display, born out of the 2012 merger of the liquid crystal display divisions of Hitachi, Toshiba, and Sony, has been losing money for years as it lagged behind its foreign rivals while the industry shifted to new technologies. "We find ourselves in a very regrettable situation," CEO Nobuhiro Higashiiriki told a press briefing. "Our biggest task is to build a management system that generates profits by keeping in mind that this is our last chance to restructure," he added. Earlier Wednesday the company said it must cut the cost of surplus production capacity. "Therefore, JDI has determined that it must overhaul its manufacturing system to bring it in line with a changing market and reduce the level of fixed costs," it said in a statement. Wednesday's jobs announcement came as the firm logged a net loss of 31.5 billion yen in the April-June period, nearly three times higher than its shortfall in the same quarter a year earlier. The group also expects to book a full-year operating loss due to heavier development costs to cope with growing demand for light-emitting OLED displays. The company was slow to enter the market for OLED screens, which are more flexible than LCD screens and boast a sharper image. "We have decided to make a strategic change as we would have no future in the smartphone business without OLED," the firm's CEO said. The group is testing a new OLED panel but mass production will not begin until 2019, he added. South Korea's Samsung is leading in OLED mass production, with another South Korean group, LG, trying to catch up. OLED screens are increasingly becoming the preferred choice in high-end smartphones and Apple is rumoured to be planning a switch to OLED technology for its new iPhone, which is being launched this year. Japan Display, which has factories in Japan and elsewhere in Asia, supplies screens to Apple and China's Huawei. Public-private Innovation Network of Japan is its top shareholder with a stake of more than one-third.

Japan Display incurs losses, to cut workforce

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Apple supplier Japan Display loses out on Chinese funds, survival at risk

Japan Display incurs losses, to cut workforce