Report: Toshiba Corp May be Considering Bankruptcy
Last month, amid various financial difficulties, Toshiba Corporation warned of its ability to continue as a going concern, and this week, Fox News reports that “Toshiba Corp.’s business partners are preparing for a scenario in which the company seeks to reorganize under Japanese bankruptcy laws.” as first reported in The Wall Street Journal.
Toshiba has said that it expects to record a net loss of about 1 trillion yen ($8.83 billion U.S.) for its fiscal year that ended on March 31, 2017 after its U.S. nuclear unit, Westinghouse Electric, files for Chapter 11 bankruptcy protection.
Toshiba is also seeking to sell its flash-memory business.
Under Japan’s corporate-reorganization law, Toshiba could file for bankruptcy protection in order to relieve itself of some debt. This might enable Toshiba Chief Executive Satoshi Tsunakawa to build a new Toshiba, and might also enable it to keep its memory-chip business.
A Toshiba spokesperson however denied the bankruptcy rumors, stating, “At this moment, we do not have any thought or intention of seeking protection under corporate-reorganization proceedings.”
Toshiba is said to be consulting with Industrial Growth Platform, a company that specializes in corporate recoveries.
Since the beginning of this year, Toshiba has twice failed to submit earnings reports; when it did submit a report in April, it reported a $5.9 billion loss. Last month, it also said it would be splitting off four of its companies into wholly owned subsidiaries.
- April 2017: Toshiba Splitting Off Four of its Companies into Wholly Owned Subsidiaries
- April 2017: Toshiba Tec Claims Largest Share in China’s A3 MFP Market
- April 2017: TABS CEO Reassures Clients in Wake of Toshiba Corp. Difficulties
- April 2017: Toshiba Reports $5.9 Billion Loss, Warns of Ability to Continue as Going Concern
- March 2017: Toshiba Approves Sale of Chip Business; Foxconn May be Bidder
- March 2017: Troubled Toshiba Fails to Submit Audited Third-Quarter Earnings Report
- February 2017: Toshiba America Business Solutions Seeks to Reassure Customers, Partners Amid Toshiba Financial Difficulties
- February 2017: Toshiba Delays Financial Report, Chairman Steps Down Over Losses in Nuclear Business
- February 2017: Toshiba May be Considering Selling Toshiba Tec