Ailing Japanese electronic company Sharp will be closing down three LED factories as part of its drastic cost-cutting plan, according to a latest Nikkei report.

Sharp reported net loss of 30 billion Japanese Yen (US $250 million) for its latest fiscal year (April 2014-March 2015) reversed previous profit forecasts.

The company’s net losses are expected to further escalate to 100 billion Japanese Yen by the end of the year. As Sharp exits the money-losing solar cell business, it will be forced to sell manufacturing equipment at discount prices or at a loss. The solar cell business has been the main cause of losses. Intense competition from government subsidized Chinese solar cell manufacturers has made it difficult for the Japanese manufacturer to profit.

A restructure plan will be announced in May this year will mainly consist reorganizing its electronic component and PV businesses, said Sharp.

Meanwhile, Sharp plans to seek financial aid from Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ. The company estimates it will acquire 150 billion Japanese Yen financing, and is also considering third-party financing.

The company's stocks have dropped 10% since the announcement that the company might enter the 150 billion yen debt-for-equity swap, reported AFP.

Samsung Electronics, which has a 3% stake in Sharp, might be considered a potential lender as well as other international electronic companies in Japan.

According to the Nikkei report, Sharp’s display business revenue share is about 32%, electronic appliances make up 23%, while solar cell businesses about 9%.

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