Westinghouse reviewing bankruptcy financing packages
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