Toshiba woes intensify on $6 billion writedown

TOKYO: Toshiba Corp’s financial crisis deepened on Thursday as media reported it may book a bigger-than-expected $6 billion write-down on its US nuclear business, sending its shares sliding 15 per cent.
The reports cast doubt on whether measures the beleaguered industrial conglomerate is expected to take to bolster its finances – including the sale of a stake in its chip business – will be sufficient to address any shortfall.
Toshiba has also approached government-backed Development Bank of Japan (DBJ) for assistance, said a source with knowledge of the matter, who was not authorised to speak on the matter and declined to be identified. Other sources said Toshiba executives will sit down with representatives from its main banks as early as on Thursday to discuss possible support.
The president of Sumitomo Mitsui Banking Corp, one of its main banks, told a briefing the lender would like to support Toshiba as much as possible.
Representatives for DBJ and Mizuho Bank were not immediately available to comment. Sumitomo Mitsui Trust Bank, another main bank, declined to comment.
Battered by an accounting scandal in 2015, Toshiba was suddenly plunged back into crisis late last year after it emerged that it would have to write down cost overruns at projects handled by a newly acquired U.S nuclear power plant construction firm.
Sources familiar with the matter had previously flagged the size of the expected charge at more than 500 billion yen ($4.4 billion). Kyodo news agency and other domestic media said that estimates had now ballooned to 700 billion yen, in part due to unfavourable currency rates.
— Reuters