Struggling TV and display maker Sharp will be borrowing money and cutting its workforce to attempt a financial turnaround, Reuters reports. In a business plan and financial statement set for release on Tuesday, Sharp will apparently reveal plans to obtain more loans on top of the 360 billion yen ($3.5 billion) it borrowed last year, taking out another 150 billion yen ($1.5 billion) in return for giving the lenders senior management positions, among other conditions. In its last round of loans, it agreed to lay off 10,000 employees and sell off overseas assets, including plants in China, Malaysia, and Mexico.
Sharp has been in bad financial shape for years, and it's expected to post a 500 billion yen ($5 billion) loss for the past year, even worse than initially forecast. Over the next three years, it hopes to return to profitability with the help of Samsung, which promised it 10.4 billion yen ($10.5 million) in funding to help improve its display production. In exchange, Samsung was given access to Sharp's LCD line. While Sharp also makes panels for Apple, it will apparently attempt to spur growth by expanding business with Samsung. Another deal with Hon Hai Precision, which had previously said it would buy a stake in Sharp, failed to materialize after a Sharp stock tumble and reluctance to transfer control to Hon Hai.