Cash-strapped electronics giant Sharp Corp is offering nearly all of its Japanese real estate - including its Osaka headquarters - as collateral for fresh bank loans.
The unusual move comes as Sharp looks to stem massive losses that have pounded its share price and thrown into doubt a deal that would see Taiwan's Hon Hai Precision inject desperately needed money into the Japanese firm.
The plan to use real estate as collateral for bank financing worth up to Y150 billion ($A1.9 billion) excludes some properties in Tokyo's suburbs that the firm wants to sell.
Last week, Standard & Poor's cut its credit rating on Sharp to junk status.
"Sharp's liquidity position has weakened, and the company is highly dependent on short-term borrowings in light of weak internal cash flow and a less favourable funding environment," S&P said in its August 31 statement.
On Thursday, ratings agency Fitch put Sharp under review for a possible downgrade that could again see the beleaguered firm's credit rating slapped with non-investment grade, or junk, status.
Fitch cited the "increasing likelihood that the company will not be able to take timely action to maintain its investment-grade rating" and warned that a "downgrade by more than a notch cannot be ruled out as the company faces a significant challenge to turn around its operations".
Sharp shares dived to a four-decade low last month with investors wiping around $A1 billion off its market value in just one day following the release of its dismal financial results.
The shares closed down 4.3 per cent to Y200 on Thursday in Tokyo.
To stem the bleeding, Sharp has announced a huge overhaul that could see it cut about 15 per cent of its 57,000-strong global workforce, its first layoffs since 1950.The company, which has seen its mainstay television, liquid crystal display and solar panel products struggle, said the job reductions were part of a bid to cut annual fixed costs by Y100 billion.