Sanyo Electric said on Tuesday it was considering raising fresh funds to finance its massive restructuring plan, as speculation grew that it was facing significantly larger losses than forecast and could be in danger of collapse.

The electronics group, which delayed its interim results announcement following the abrupt departure of its chief financial officer last month, is expected to raise about Y200bn ($1.68bn) in new funds to avoid a further deterioration in its financial health, major Japanese newspapers reported on Tuesday.