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No clear solution to Toshiba’s nuclear financial woes

Money down holeToshiba reckoning looms with chip decision, nuclear hole unresolved, Reuters Jan 26, 2017 Toshiba Corp faces a day of reckoning on Friday, when it is expected to offer an initial estimate of the multibillion-dollar charge it must take on its U.S. nuclear business, but this will be only a step in a series of tough choices on the Japanese conglomerate’s survival.

Toshiba’s board meets to approve plans to spin off its semiconductor business as a separate company, hoping to raise more than 200 billion yen ($1.74 billion) by selling as much as a fifth of the core money-making unit, a person with direct knowledge of the matter said.

But as the proceeds would be just a fraction of the hole from cost overruns in its Westinghouse nuclear business – which local media put at 680 billion yen ($6 billion) – the chip sale would only be the start of a solution, which would require help from Toshiba’s banks and possibly the government-backed Development Bank of Japan (DBJ).

  Toshiba, which declined to comment on plans for its chip business, says it will unveil the writedown on Feb. 14 when it reports third-quarter results. In the meantime, it has been in regular talks with its banks…..

Whether to sell part of the nuclear business at the heart of its problems is a subject for discussion between Toshiba and its lenders, people close to the situation say…….http://www.reuters.com/article/us-toshiba-accounting-idUSKBN15A2IT

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January 27, 2017 - Posted by | general

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