Elpida Memory's board of directors has approved plans to downsize the company's paid-in capital by 63.5%, and then raise money by issuing up to 803 million new shares, according to the Japan-based memory firm.

Elpida plans to downsize its capital to JPY86.1 billion (US$1.1 billion) from JPY236.1 billion as of January 31, 2012, according to the resolution passed the company's board of directors.

Elpida's board also supported another proposal that the company can issue up to 803 million new shares, which were doubled from the 403 million units planned previously.

The planned capital reduction and revised fundraiser are both subject to approval by company shareholders at an extraordinary meeting scheduled for March 28.

Elpida previously disclosed uncertainty about the company's ability to continue its operations, as talks with Japan's trade ministry, state-owned and private banks appeared to stall. The chip firm expected to reach agreements with the parties on new financial support enabling it to repay company debts due by early April

By: DocMemory
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