Seeking to contain losses attributed to its nuclear power division Westinghouse Electric Co., Toshiba is now working to have the business file for Chapter 11 bankruptcy, according to unnamed sources.
The fiscal year in Japan ends March 31, which the company has set as a target date for having Westinghouse file for bankruptcy, 4-Traders, a financial news service said Friday.
The formal announcement on the bankruptcy filing may be postponed, however, until after a special shareholders meeting in which a vote will be taken on the spin-off of Toshiba's chip business, which is also under consideration. That would push the bankruptcy filing to the end of April, sources said.
Reportedly, the U.S. government has already intervened, trying to stave off a decision that would affect U.S. jobs.
Toshiba has already said that its nuclear power business had lost $6.4 billion from April 1 through December of 2016.
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I really don't understand this!
How can you have a loss of 6.4b in 9 months.
Well there goes that business down the toilet.
People in the business understand cost over runs in the nuke biz........but lossing 6.4 billion in less than a year is preposterous.....someone in upper management has their hands in the till....