Toshiba wants Westinghouse to file for bankruptcy as early as Tuesday: source

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Source: Reuters

Toshiba Corp wants its U.S nuclear unit to file for Chapter 11 protection from creditors as early as Tuesday, according to a source with direct knowledge of the matter, seeking a quick ringfencing of losses before the Japanese parent's financial year ends.

While a Westinghouse bankruptcy filing would help limit future losses for Toshiba, it still falls far short of drawing a line under its problems.

Any filing would trigger complex negotiations between Toshiba, the nuclear unit and creditors, and could embroil the U.S and Japanese governments given the scale of the collapse and U.S. state loan guarantees for new reactors. A worry for Prime Minister Shinzo Abe is that a bankruptcy would give President Donald Trump cause to criticize Japanese firms operating in the United States.

"Westinghouse is a major employer and nuclear industry company with ongoing nuclear new build projects in two different states, one of which is supported by U.S. Department of Energy loan guarantees," said George Borovas, the global head of nuclear at law firm Shearman & Sterling.

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Read more: http://www.reuters.com/article/us-toshiba-accounting-idUSKBN16X12P

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1. Report: Toshiba's Westinghouse Electric May File Bankruptcy Tuesday

http://www.nasdaq.com/article/report-toshibas-westinghouse-electric-may-file-bankruptcy-tuesday-20170326-00038

Report: Toshiba's Westinghouse Electric May File Bankruptcy Tuesday

March 26, 2017, 08:35:00 PM EDT By RTT News

(RTTNews.com) - Westinghouse Electric Co, the U.S. nuclear unit of Japan'sToshiba Corp (TOSYY.PK, TOSBF.PK), could file for Chapter 11 bankruptcy in the U.S. as early as Tuesday, Nikkei Asian review reported.

Westinghouse reportedly plans to meet with American utilities and other stakeholders Monday to discuss a bankruptcy filing. Late-stage talks are underway on continuing construction of two behind-schedule nuclear power plant projects while under bankruptcy protection.

The report noted that the board will meet as early as Tuesday to decide on a Chapter 11 petition. Toshiba directors are expected to meet during the week to approve the filing.

Westinghouse's loss-ridden U.S. nuclear power business has plunged Toshiba into a financial crisis. The Japanese group is bracing for more than 700 billion yen or $6.28 billion in impairment charges in the fiscal year ending Friday stemming from the American unit's ill-fated acquisition of a plant construction services company.

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