Beleaguered Japanese dairy company Snow Brand Milk Products is reported to be forecasting extraordinary losses of approximately ¥80bn (US$626.7m) for the current fiscal year.

The group is however negotiating with lenders to avoid falling into a negative net worth by securing ¥50bn in financial assistance from banks.

The group is due to unveil details of its restructuring plan on 23 May, when it will also reveal its outlook for the current fiscal year.

The company has been in a slump for over a year following a series of product scandals. The latest came when its subsidiary, Snow Brand Foods Co. was discovered to have mislabelled foreign beef as domestic beef to take advantage of a government buyback scheme introduced following the outbreak of BSE, or mad cow disease, in Japan.