UPDATE 1-Debt-laden Elpida eyes doubled share issue

* To seek OK to tap 150 bln yen of paid-in capital

* Faces tough debt deadlines, heavy losses

* Needs to agree on turnaround plan with lenders (Adds background)

TOKYO, Feb 23 (Reuters) - Japanese chipmaker Elpida Memory Inc plans to double to 800 million the number of common shares it can issue, as it grapples with debt repayment deadlines and pressure to deliver a turnaround plan to its creditors, the firm said on Thursday.

The move, pending approval at an extraordinary shareholders' meeting on March 28, comes as the world's third-largest maker of DRAM chips needs to repay 92 billion yen ($1.15 billion) in bonds and loans over the next two months.

Elpida has repeatedly raised funds to keep pace with bigger South Korean rivals Samsung Electronics Co and Hynix Semiconductor Inc, but has been hammered by a slump in prices for its dynamic random-access memory (DRAM) chips.

The chipmaker will also ask shareholders to allow it to tap 150 billion yen ($1.87 billion) of its paid-in capital to buy back preferred shares it issued to the Development Bank of Japan. That would cut its paid-in capital by 63.5 percent to 86.1 billion yen.

Lenders and Elpida, a supplier to Apple Inc, need to agree on a turnaround plan by the end of next month.

Last week, Elpida flagged doubts over its ability to continue as a going concern since it has been unable to agree on support from banks and the government ahead of the debt repayment deadlines.

Japan's sole DRAM chip maker earlier this month posted a 43.8 billion yen operating loss for October-December, its third straight quarterly loss.

While all DRAM makers are suffering, Elpida has the added handicap of a strong yen that has further crimped profits.

There has also been speculation Elpida was seeking a rescue deal with U.S. DRAM maker Micron Technology and its Taiwanese partner Nanya Technology, though Elpida President Yukio Sakamoto has played down the need for an immediate equity tie-up.

Japan's government is also reportedly looking to combine the struggling system chip operations of Renesas Electronics , Fujitsu Ltd and Panasonic Corp, with production outsourced to GlobalFoundries, a California-based company that could buy Elpida's chip plant in Hiroshima as part of that deal.

Prior to the announcement, Elpida shares jumped to settle 12.6 percent higher on Thursday. ($1=80.3200 Japanese yen) (Reporting by Mayumi Negishi and James Topham; Editing by Michael Watson)