(Reuters) - Japan's loss-making Sharp Corp will seek new funds for further restructuring from its two main lenders, a source with direct knowledge of the matter said, with a debt-to-equity swap seen by bankers as the most feasible option.
In what would be its second bailout in three years despite extensive restructuring, the electronics manufacturer is hoping to raise as much as 200 billion yen ($1.7 billion), most of it through a debt-equity exchange, the Nikkei business daily reported.
Shares in the company, which last month warned of its third annual net loss in four years and said it was working on a fresh plan to overhaul its businesses, tumbled as much as 10 percent.
Fierce competition from Apple Inc, Samsung Electronics Co as well as cheaper Chinese makers has hammered Japan's once mighty consumer electronics firms. But while rivals like Panasonic Corp and Sony Corp have made progress in turning around some operations, Sharp, once Apple's most favored screen supplier, has not. read more here