Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Tokyo  >  Toshiba Corp    6502   JP3592200004

News SummaryMost relevantAll newsSector newsTweets 

Exclusive: Toshiba's Westinghouse seeks U.S. bankruptcy financing - sources

share with twitter share with LinkedIn share with facebook
share via e-mail
03/20/2017 | 11:16pm CEST
FILE PHOTO:  The logo of Toshiba Corp. is seen at the company's facility in Kawasaki

Westinghouse Electric Co LLC, the nuclear power plant developer owned by Japanese electronics company Toshiba Corp (>> Toshiba Corp), is taking offers for a financing package to help it go through U.S. bankruptcy, people familiar with the matter said on Monday.

Westinghouse Electric Co LLC, the nuclear power plant developer owned by Japanese electronics company Toshiba Corp (>> Toshiba Corp), is taking offers for a financing package to help it go through U.S. bankruptcy, people familiar with the matter said on Monday.

Toshiba is reviewing proposals from financial institutions and investment firms about a so-called debtor-in-possession loan, which would carry the company through a potential bankruptcy, said two people familiar with the situation. The size of this financing package is expected to exceed $500 million, the people added.

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 United States in more than 30 years.

The sources cautioned that the move is preparatory and that no decision has yet been made for Westinghouse to file for bankruptcy. They asked not to be identified because the deliberations are confidential.

Reuters 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 and Westinghouse did not immediately respond to requests for comment.

Toshiba has said it would take a $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.

The power plants Westinghouse is building are called the Virgil C. Summer Nuclear Generating Station in Fairfield County, South Carolina and the Vogtle Electric Generating Plant in Burke County, Georgia. Scana Corp (>> SCANA Corporation) and Santee Cooper own the plants in South Carolina, and Georgia Power leads a consortium that commissioned the Georgia plants.

"We will continue to hold (Westinghouse) accountable for their responsibilities under our agreement," Georgia Power said in a statement. "Work continues to progress at the Vogtle site, we are monitoring the situation and prepared for any potential outcome."

A spokeswoman for Scana said that "with approximately 5,700 contractor and subcontractor personnel on site today, we continue to make progress with construction of these new units."

In a potential Westinghouse bankruptcy, the utility companies would be among the largest creditors of the developer, owed the work that has yet to be completed and potential penalties, according to the sources.

The exploding population in the southeastern United States spurred the development of the plants, which were first approved by regulators in 2012.

Nuclear power fell out of favor in the United States after a partial nuclear meltdown at Three Mile Island in central Pennsylvania in the late 1970s.

Toshiba's acquisition of Westinghouse about 10 years ago for $5.4 billion represented a major bet on a renaissance of the fuel. But the projects now face long construction delays and billions of dollars in cost overruns.

(Reporting by Jessica DiNapoli in New York; Additional reporting by Tom Hals in Wilmington, Delaware and Clara Ferreira-Marques in Singapore; Editing by Lisa Shumaker)

By Jessica DiNapoli

Stocks treated in this article : SCANA Corporation, Toshiba Corp
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on TOSHIBA CORP
04/26 TOSHIBA : ASRT Foundation, Toshiba Launch Safety Grant Program
04/26 TOSHIBA : plans to replace auditor PwC after earnings impasse
04/25 TOSHIBA : aims to file results without auditor endorsement
04/25 TOSHIBA : Sources Sought Notice - J-- Toshiba CT System Maintenance Services
04/24 TOSHIBA : has Supplied Propulsion Systems for Tobu Railway's New Train Cars
04/24 TOSHIBA : RECAIUS, Artificial Intelligence Service to Provide Japan's Largest Re..
04/24 TOSHIBA : to Reinforce Organizational Management
04/24 Ten most active stocks on Tokyo Stock Exchange
04/24 TOSHIBA : Embattled Toshiba to spin off 4 key operations
More news
Sector news : Industrial Conglomerates
04/26 KKR to buy Hitachi unit valued at $2.3 billion
04/25 DuPont profit beats on strong seed demand
04/25 DuPont profit beats on strong seed demand
04/25 Baker Hughes expects North America revenue to rise in 2nd quarter
04/25 3M raises 2017 profit forecast; first-quarter results top estimates
More sector news : Industrial Conglomerates
News from SeekingAlpha
04/26 WALL STREET BREAKFAST : Tax Day Comes Round Again
04/26 Toshiba plans to replace PwC
04/25 WALL STREET BREAKFAST : Border Wall, Taxes And Tariffs
04/25 Toshiba to start taking bids for Swiss unit
04/24 Game Plan For The Week - Cramer's Mad Money (4/21/17)
Financials ( JPY)
Sales 2017 5 463 343 M
EBIT 2017 -
Net income 2017 -652 302 M
Debt 2017 663 275 M
Yield 2017 0,14%
P/E ratio 2017 -
P/E ratio 2018 6,11
EV / Sales 2017 0,29x
EV / Sales 2018 0,26x
Capitalization 915 322 M
More Financials
Duration : Period :
Toshiba Corp Technical Analysis Chart | 6502 | JP3592200004 | 4-Traders
Full-screen chart
Technical analysis trends TOSHIBA CORP
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus HOLD
Number of Analysts 13
Average target price 240  JPY
Spread / Average Target 11%
Consensus details
EPS Revisions
More Estimates Revisions
Satoshi Tsunakawa Executive President & Director
Masayoshi Hirata Chief Financial Officer & Director
Naoto Nishida Senior Managing Executive Officer
Yasuo Naruke Director & Representative Executive Vice President
Kouichi Ikeda Independent Outside Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
TOSHIBA CORP-21.85%8 217
SIEMENS AG13.61%123 459
3M CO9.27%116 609
E I DU PONT DE NEMOURS..12.00%71 077
More Results