Struggling construction firm Tobishima Corp. said Wednesday it will ask its three main creditor banks to buy 30 billion yen in new preferred shares.

Tobishima -- set to merge with Kumagai Gumi Co., another contractor perpetually on life support, by April 2004 -- also said it will book an extraordinary loss of 34 billion yen for the business year that ended March 31.

In addition, the company will reduce its capital by 90 percent; shareholders will also take a hit via a 1-for-2 reverse stock split.