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Sharp Chinese officials denied that the scale of layoffs will expand. The person did not deny the bank loan mentioned above. Due to uncertainty in the banking sector, Sharp China declined to comment further on the report.
In this regard, the industry pointed out that the negotiations with Hon Hai Precision (hereinafter referred to as Hon Hai) were in a stalemate, which further increased the challenges faced by Sharp.
Denying the expansion of the scale of layoffs
According to public information, Sharp plans to cut the total number of layoffs by 5,000 by the end of March 2013. However, since Sharp announced the layoffs plan, the number has been exposed many times will be expanded.
Foreign media reported that Sharp announced a new round of large-scale restructuring plan. By the end of March 2014, it plans to lay off nearly 11,000 people worldwide, accounting for about 20% of the total number of employees. In addition, Sharp will halve the staff bonus from October this year to September next year, and reduce wages, saving about 50 billion yen in labor costs in fiscal 2012.
It is worth noting that the chairman of Sharp Greater China, Mr. Kanno, also said that the layoff plan is mainly aimed at Japan and Europe, and there will be no layoffs in China. But yesterday's news showed that the laid-off staff will also include staff from the Mexican, Chinese and Malaysian TV assembly plants that Sharp plans to sell.
Sharp China’s relevant people made it clear that the report was not true, and the previously announced layoff plan has not changed.
Sharp confirms financing application to the bank
"The purpose of Sharp's layoffs and salary cuts is to make profits in the next fiscal year." Hong Shibin, vice chairman of the China Household Appliances Marketing Committee, said that the expansion of the loss has made it impossible for Sharp to expand the scope of layoffs. In addition, Sharp's huge demand for funds in the short term puts enormous pressure on it.
According to the data, the current Sharp debt scale has reached 1.25 trillion yen, including 360 billion yen of short-term commercial paper. In addition, Sharp's 200 billion yen convertible bonds will expire in September next year. After a net loss of 138 billion yen in the most recent fiscal quarter, Sharp's net asset ratio has reached 18.7%, which is lower than 20% of the corporate health threshold.
Although Sharp's main creditors, Mizuho Corporate Bank and Mitsubishi Tokyo UFJ Bank, secured the land and buildings of Sharp's head office, domestic factories, and business bases at the end of August this year, a loan amount of 150 billion yen was set. However, from the above debt situation, this amount is far from enough.
The latest news shows that Sharp will receive up to 210 billion yen ($2.7 billion) in new loans in the near future. The above-mentioned Sharp China related person confirmed that Sharp has filed a financing application with the bank, but "the bank has not decided whether it is still uncertain." 
Sharp denies the expansion of the scale of layoffs. Hon Hai sits waiting for Sharp to "self-rescue"?
Japanese media revealed that Sharp has recently confirmed a new round of large-scale restructuring plan, plans to lay off nearly 11,000 people worldwide, which is far more than the 5,000 layoffs proposed earlier. There is also news that Sharp's main creditors Mizuho Corporate Bank, Mitsubishi Tokyo UFJ Bank and other banks are expected to provide a total of about 360 billion yen in loans in response to Sharp's restructuring plan.