Toshiba’s nuclear power firm will file for bankruptcy

Toshiba’s nuclear power firm will file for bankruptcy

Toshiba’s nuclear power firm from the U.S. - Westinghouse Electric Co. – will be filing for bankruptcy as early as Tuesday. The Japanese electronics corporation wishes the limit the losses from Westinghouse, as it as outstanding charges from its current business year – to the tune of ‎¥1 trillion (US$9 billion).

The Chapter 11 filing was planned for Friday, but Westinghouse’s board will be meeting on Tuesday, and it’s likely that the filing will be done on the same day, according to Reuters. Shares of Japan's Toshiba Corp. rose by 4% before tumbling down another 5.52% at the time of writing. Filing for bankruptcy reduces risk for Toshiba’s overseas nuclear business.

Toshiba is also looking towards Kepco, South Korea’s largest electric utility company, for assistance. They’ve asked Kepco to be a sponsor in its bankruptcy re-organization.  

The Japanese electronics company acquired Westinghouse at ¥612 billion (US$5.63 billion) back in early 2006. The nuclear power company was meant to help expand Toshiba’s nuclear power business, and Westinghouse was, in Toshiba's eyes, the leader in nuclear R&D and techniques.

Source: Reuters