May 12, 2015 / 11:55 PM / in 3 years

Sharp scales down capital reduction plan: report

TOKYO (Reuters) - Loss-making Japanese electronics maker Sharp Corp is scaling down plans to reduce its capital as part of a restructuring package, a report said on Wednesday, a day before it was due to unveil details of the new business strategy.

A shopper using a smartphone rides an escalator past under a logo of Sharp Corp at an electronics shop in Tokyo March 3, 2015. REUTERS/Yuya Shino

The Nikkei business daily reported that Sharp would reduce its capital to 500 million yen ($4.2 million) from over 120 billion yen, instead of a previously planned cut to 100 million yen, which would have qualified it for tax breaks granted to small and medium-sized enterprises.

The reported change would come as the company scrambles to finalise the terms of a $1.7 billion bailout it has been negotiating with its lenders. Details of the rescue plan, along with restructuring measures including job cuts, are expected to be announced on Thursday.

Company officials were not immediately available for comment.

Reporting by Ritsuko Ando; Editing by Kenneth Maxwell

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