Splits of Japan Display fell as much as 7 percent early on Wednesday after saying it had yet to reach an agreement for a tie-up with an outer party that it had said would be sealed by the first half of this week.
Japan Display has been object for a capital increase of 110 billion yen ($990 million), most of it through the issuance of stocks and bonds to external investors.
It has not mentioned the external investors, although two sources have previously told Reuters it was looking to an investor group, led by China Silkroad Investment Select, for a bailout.
In a statement late on Tuesday, Japan Display said it was making progress towards an agreement and that it was in the concluding stage of negotiations. It did not give a new time frame for an expected deal.