Such a hit would be another slap in the face for a sprawling conglomerate hoping to recover from a $1.3 billion accounting scandal as well as a writedown of more than $2 billion for its nuclear business in the last financial year.”This will come as an additional shock to Toshiba’s institutional investors that may further undermine confidence in company management as well as significantly weakening its international nuclear credentials,” said Tom O’Sullivan, founder of energy consultancy Mathyos Japan.
O’Sullivan noted the acquisition in December 2015 coincided with the finalizing of a record fine by Japanese regulators for accounting irregularities at Toshiba, indicating that corporate governance controls were extremely weak……
As of end-September, Toshiba had shareholders’ equity of 363 billion yen, or just 7.5 percent of assets, which could fall close to zero if the company is forced to log significant losses…….
Toshiba has positioned its nuclear and semiconductors businesses as key pillars of growth while seeking to scale down less profitable consumer electronics units such as personal computers and TVs…….
The deal between CB&I and Toshiba’s Westinghouse division has been fraught with disagreement since at least July.
Clashing over who should shoulder potential liabilities related to cost overruns and over calculations for working capital for the unit, CB&I sued Toshiba’s Westinghouse division after Westinghouse said it was owed more than $2 billion……. https://www.washingtonpost.com/business/economy/toshiba-may-lose-billions-of-dollars-on-troubled-us-nuclear-power-deal/2016/12/27/dd6503c4-cc4f-11e6-a747-d03044780a02_story.html?utm_term=.a3d4b3382b25
nuclear-news 
Leave a Reply