Olympus "sorry" for capital raising delay Olympus, the Japanese camera-maker hit by financial scandal, unveiled a restructuring on Friday under which it will cut jobs, close factories and sell marginal assets but it delayed a much-anticipated plan to raise capital. We are hurrying but it will take more time. I'm extremely sorry," Hiroyuki Sasa, chief executive, said of the company's efforts to strengthen its balance sheet, whose condition he admitted had been rendered "pathetic" following revelations last year of a Y130bn accounting fraud. Under the restructuring plan announced on Friday, Olympus is to cut 2,700 jobs, about 7 per cent of its workforce, consolidate production by closing 12 of its 30 manufacturing sites worldwide and sell off or close non-core businesses. Three obscure subsidiaries in Japan that were implicated in the fraud are to be sold by next March. Panasonic, Sony, Fujifilm and other Japanese groups are vying to buy minority stakes in Olympus, which despite its problems is seen to possess valuable technology and sales networks. It controls some 70 per cent of the lucrative market for surgical endoscopes. Mr Sasa, who took over as chief executive in April at the top of a new board, suggested that bringing in a strategic investor remained the most probable method by which it would raise capital. But he added that Olympus was considering other options. He denied media reports that an informal deal had already been struck with Panasonic, saying Olympus was "examining all candidates equally." He did not give a reason for the delay, but suggested a decision might not be made before Olympus" annual shareholder meeting later this month, a date by which he had previously said he hoped to close a deal. Industry insiders and Japanese media have said Olympus is looking to raise between Y30bn ($378m) and Y50bn, an amount that, if it took the form of new shares, would translate to a stake of 8-12 per cent. Olympus" sales have held up despite the accounting scandal and analysts say its cash flow is robust enough to keep it out of immediate danger. But its equity ratio - net assets as a proportion of total liabilities plus net assets - was just 4.5 per cent as of March, well below the 10 per cent level that Mr Sasa said would keep it "safe" from risks such as a further economic downturn or legal claims related to the fraud. Olympus's restructuring plan sets a goal of raising the equity ratio to 30 per cent in five years. Discord between Olympus and its bankers may explain why the company is moving slowly. Olympus is highly leveraged, with net debt almost six times equity, and many believe it is its banks which are behind the move to issue shares and ally with a larger group. Executives, for their part, may be searching for other ways of raising money that would not hinder Olympus" independence. Olympus said it expects to post a Y7bn net profit this year, compared with a Y49bn loss for the fiscal year 2011. By fiscal 2016, it is aiming to cut its gross debt by more than half to Y300bn and earn a net profit of Y85bn.