Its shares rose as much 9% to 165 yen on the Tokyo Stock Exchange. 

 

Sharp has been trying to restructure its business amid mounting losses and falling sales. 

 

However, it has found to it tough to raise money after its credit rating was cut to "junk" status earlier this year.

 

When a firm's bonds are rated as "junk", or high risk, some institutions and investors³ may no longer invest in it, making it harder for the company to raise fresh capital.

 

 

Sharp, like many other Japanese electronics makers⁴, has been hurt by a slowing demand for TVs, which coupled with falling prices and a strong yen has hurt its profitability.

 

Earlier this month, the electronics maker issued a warning about its survival, as it forecast a loss of 450bn yen for the financial year, ending 31 March 2013.

 

In an effort to revive its fortunes, the company has been looking for potential investors. 

 

In March, it agreed a deal to sell a stake of about 10% to Taiwan's Hon Hai Precision Industry, for $800m. However, that deal is yet to be concluded. 

 

Sharp's shares have plunged⁵ nearly 70% since then and there are concerns that the deal may not happen at all. 

 

Analysts⁶ said that Sharp needed to raise capital quickly to secure its future.

 

"They are desperate to raise funds as they have a huge cash flow problem right now," Gerhard Fasol of Eurotechnology Japan told the BBC.

 

"They not only need money to run their day-to-day operations, but also to service some of their debt that will be due in the coming months." 

 

Mr Fasol added that Sharp also needed to invest in research and development, to come up with products that will help to regain⁷ some of its market share.

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