Japan Display, the troubled iPhone screen supplier, admitted last year that it fired an accounting executive for trying to get about $5.3 million out of the company’s accountover over a four-year period,media reported. Reuters noted that between July 2014 and October 2018, the unnamed executive, who has not been named, used fictitious payees to extort company funds, but was also charged with defrauding the company.
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JDI didn’t officially announce the news until Thursday, despite being fired last year. At the same time, the company has initiated criminal proceedings against the parties and will cooperate with the police on the matter.
As JDI continues to fight for its financial survival, the case is crucial to the company’s survival, and negotiations are under way for a rescue deal.
JDI hopes that money from investors such as Apple will help it through (about 50 billion yen / $460 million), and Apple has generously shortened the payment terms for JDI parts.
The October announcement also involved the relaxation of payment terms by other business partners, which increased JDI’s short-term financing by $370 million. It is reported that Apple accounts for about 60% of its revenue as a major customer of JDI LCD screens.
But as Apple’s transition to OLED has been relatively slow, it has lost its competitiveness to other display makers struggling to catch up.