Japan Display is looking for help from Foxconn, which bought Sharp last year and from two Chinese display panel manufacturers Tianma Microelectronics and BOE Technology Group.
Japan Display has made losses for the past three years and is expected to make a loss this year.
The company lags behind the leaders in OLEDS which are taking an increasing share of the display market.
Japan Display employs 13,000 people and plans to cut 3,500 jobs abroad and 250 at home to save $450 million a year. It has plants in China and the Philippines and plans to integrate plants in Japan.
Restructuring is expected to cost $1.8 billion.
The company’s bankers are looking to lend it $1 billion to keep it afloat while it reorganises.