West­ing­house re­view­ing bank­ruptcy fi­nanc­ing pack­ages

New Straits Times - - Business -

NEW YORK: West­ing­house Elec­tric Co LLC, the nu­clear power plant de­vel­oper owned by Ja­panese elec­tron­ics com­pany Toshiba Corp, was tak­ing of­fers for a fi­nanc­ing pack­age to help it go through United States bank­ruptcy, said peo­ple fa­mil­iar with the mat­ter on Mon­day.

Toshiba was re­view­ing pro­pos­als from fi­nan­cial institutions and in­vest­ment firms about a so­called debtor-in-pos­ses­sion loan, which would carry the com­pany through a po­ten­tial bank­ruptcy, said two peo­ple.

The size of this fi­nanc­ing pack­age was ex­pected to ex­ceed US$500 mil­lion (RM2.21 bil­lion), said the peo­ple.

Should it file for bank­ruptcy, the money would al­low West­ing­house to con­tinue to pay em­ploy­ees and build four nu­clear power plants in Ge­or­gia and South Carolina com­mis­sioned by lo­cal util­ity com­pa­nies.

Th­ese would be the first nu­clear power plants built in the US in more than 30 years.

The sources cau­tioned that the move was prepara­tory and no de­ci­sion had yet been made for the com­pany to file for bank­ruptcy.

It was re­ported ear­lier this month that West­ing­house was work­ing with bank­ruptcy at­tor­neys and a turn­around ex­pert.

Toshiba has so far said it was con­sid­er­ing sev­eral op­tions for West­ing­house, in­clud­ing sell­ing the unit.

Toshiba has said it would take a US$6.3 bil­lion write­down re­lated to West­ing­house, and gained an ex­ten­sion from Ja­panese reg­u­la­tors un­til April 11 to sub­mit fi­nan­cial re­sults or face hav­ing its pub­lic shares delisted from the Tokyo Stock Ex­change. Reuters

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