JIP delisting of Toshiba, final adjustment by banks to finance 1.4 trillion yen = stakeholder | Reuters

It has been revealed that a group of banks is making final adjustments to provide a 1.4 trillion yen loan to Japan Industrial Partners (JIP), which has secured favorable negotiating rights in Toshiba’s reconstruction plan. File photo taken in June (2022 REUTERS/Issei Kato)

TOKYO (Reuters) – Banks are making final adjustments to provide 1.4 trillion yen in loans to Japan Industrial Partners (JIP), which has been given preferential negotiating rights in Toshiba’s rebuilding plan, it has been learnt. 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 several sources, Toshiba’s main banks, Mizuho Bank, Sumitomo Mitsui Banking Corporation, and semi-proprietary Sumitomo Mitsui Trust Bank, plan to lend a total of more than 1 trillion yen. 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 applicants, including co-investors, due to concerns that it may disrupt the management of a fair process.” JIP has yet to comment.

Originally, Toshiba had asked JIP to submit a “letter of commitment” 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 hope of securing sufficient investment, but negotiations with JIP continued this month, and each bank went to the stage of narrowing 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 external directors will consider whether or not to accept the offer, and the board of directors will make the final decision after accepting the offer.