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As Toshiba’s $500m nuclear bankruptcy looms, Brtitain’s Moorside project looks doubtful

Fears for Moorside as Toshiba ‘lining up’ $500m bankruptcy backstop for Westinghouse nuclear arm,Telegraph UK  Jillian Ambrose 21 MARCH 2017 Fears that Toshiba’s struggling nuclear business Westinghouse could be on the brink of going under have been reignited following reports that it is lining up a US bankruptcy protection finance package.

The company is reportedly reviewing proposals from financial institutions and investment firms for a so-called debtor-in-possession loan to keep the company afloat while it undertakes a bankruptcy process.

According to Reuters, people familiar with the matter have said the loan is likely to be over $500m to enable the heavily indebted company to pay employees and complete the work on four nuclear power plants in the US. The projects are the first nuclear reactors to be built in the US for thirty years, but heavy delays have saddled Toshiba with writedowns of 712.5bn yen (£5bn).

The sources warned that the talks are at an early stage and that no final decision has been made to wind down the company. A UK spokesman for the company was not immediately able to comment.

A potential bankruptcy procedure raises serious questions over the future of a key £10bn nuclear project which plans to use the AP1000 nuclear reactor designed by Westinghouse.

Toshiba is a 60pc shareholder in the NuGeneration consortium, which plans to develop the Moorside project alongside France’s Engie, formerly known as GDF Suez.An early exit from Toshiba could heavily delay the start up of the 3.2GW Moorside project while NuGen scrambles to find new investment and approve a new nuclear reactor design to use in the project……
The company said it will deliver its full year results on April 11, its third scheduled date after failing to disclose the full impact of its Westinghouse woes twice before. http://www.telegraph.co.uk/business/2017/03/21/toshiba-lining-500m-bankruptcy-backstop-say-reports/

March 24, 2017 - Posted by Christina Macpherson | business and costs, UK