Sharp asks turnaround fund to take stake worth up to $250 million

Sharp Corp has asked a corporate turnaround fund, Japan Industrial Solutions, to take stake of up to around 30 billion yen ($250 million) to help with the loss-making electronics maker's restructuring, the Nikkei business daily reported.

Japan Industrial Solutions would purchase preferred or common shares in Sharp, the Nikkei said, adding that Sharp hopes to receive the investment by March 2016.

The request for aid would come in addition to tapping its main banks Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ for a second major bailout in three years. 

Bankers have said a debt-for-equity swap - writing off their loans in return for ownership of Sharp - would be a logical option for any new rescue.

Hit by a supply glut that had squeezed sales of its smartphone displays in China, Sharp 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.

Japan Industrial Solutions is backed by several financial institutions including Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ as well as trading house Mitsubishi Corp and the state-backed Development Bank of Japan.