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Toshiba asks for banks’ support

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Executives at ailing conglomerate Toshiba have asked banks for additional support. Three main lenders say they are considering providing new lines of credit.

Toshiba executives met with representatives of about 80 financial institutions on Tuesday. They are believed to have discussed the temporary swell in the company’s losses following the bankruptcy of its US nuclear subsidiary Westinghouse.

The firm plans to spin off its mainstay flash memory chip operation. But it will be some time before it sees any gains from selling a majority stake in the new entity.

Toshiba said it needs to secure more than 6.3 billion dollars in fiscal 2017.

Sumitomo Mitsui Banking Corporation and 2 other main creditor banks proposed additional support on the condition that Toshiba offers shares in the spin-off company as collateral.

The electronics maker has postponed the release of its earnings report twice because it needed to investigate accounting practices at Westinghouse.

It is trying to release the report by Tuesday of next week.

https://www3.nhk.or.jp/nhkworld/en/news/20170404_35/

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April 4, 2017 Posted by | Japan | , | Leave a comment