TOKYO (Reuters) - Sharp Corp and its main banks are to meet on Thursday to agree on a 200 billion yen (S$2.28 billion) rescue and overhaul plan for the loss-making electronics maker, a person involved in the discussions said.
The agreement between Sharp and its main lenders, Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ, will be its second big bailout since 2012.
The lenders will inject a combined 200 billion yen in a debt-for-equity swap, while Sharp will cut 5,000 jobs, scale back its North American television operations and spin off its LCD display unit, said the source.
Sharp's stock was up 2.6 per cent in mid-morning trade.
Mizuho is a unit of Mizuho Financial Group Inc and Bank of Tokyo-Mitsubishi UFJ is part of Mitsubishi UFJ Financial Group.
Representatives for Sharp and Bank of Tokyo-Mitsubishi UFJ could not immediately be reached for comment. A Mizuho spokeswoman said the bank could not talk about individual clients.