TOSHIBA UNIT TO FILE FOR PRO­TEC­TION TO­DAY?

Cred­i­tors may pre­fer Chap­ter 11 fil­ing for West­ing­house not to come be­fore share­holder meet on Thurs­day, says source

New Straits Times - - Business World -

TOKYO and US gov­ern­ments, can be achieved this week re­mains to be seen.

Sep­a­rate sources with knowl­edge of the mat­ter said on Fri­day Toshiba had in­formed its main banks that it was plan­ning a March 31 fil­ing for West­ing­house — the cen­tre of its multi-bil­lion dol­lar cri­sis.

“A March 28 fil­ing is one pro­posal. The think­ing is that it would great if we could pull that off but whether it goes that well or not is an­other is­sue,” said the source with di­rect knowl­edge.

West­ing­house has been plagued by huge cost over­runs and the fi­nan­cial mael­strom has al­ready caused Toshiba to put up its prized mem­ory chip unit for sale, con­sider a sale of a ma­jor­ity stake in the US nu­clear unit and miss dead­lines to file earn­ings that have put it at risk of a delist­ing.

At Thurs­day’s share­holder meet­ing, Toshiba will seek ap­proval for the sale of the chip unit.

While a Chap­ter 11 fil­ing for West­ing­house would be done by the US unit’s board and would not re­quire ap­proval by Toshiba’s share­hold­ers, a fil­ing on the same day or di­rectly be­fore or af­ter will boost the chances of con­tentious share­holder meet.

For that rea­son, Toshiba’s main banks would pre­fer the Chap­ter 11 fil­ing not come be­fore the share­holder meet­ing, said a fi­nan­cial source with knowl­edge of the mat­ter.

A Chap­ter 11 fil­ing for West­ing­house is set to in­crease charges re­lated to the unit to one tril­lion yen (RM39.97 bil­lion) from a pub­licly flagged 712.5 bil­lion yen es­ti­mate, sources have said. Reuters

BLOOMBERG PIC

Toshiba will seek ap­proval for chip unit West­ing­house’s sale at a share­holder meet­ing on Thurs­day.

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