Westinghouse reaches deal for $800 million bankruptcy loan

Westinghouse Electric Co told a U.S. court on Tuesday it had reached a deal to borrow $800 million after allaying creditors' concerns that the money would be flowing to non-bankrupt affiliates overseas. 

An attorney for Westinghouse said in U.S. bankruptcy court in New York that cash from the loan would allow the company to complete its business plan by July 27 and move toward exiting bankruptcy. 

The Pittsburgh-based company has also said it needs cash to shore up its profitable overseas businesses. 

Since Westinghouse filed for bankruptcy, its European affiliate lost access to a cash pool shared with the U.S. business, according to court records. That has threatened customer contracts, prompted one unidentified regulator to demand a $130 million letter of credit and led to financial institutions to move to end swap agreements, according to a court filing. 

Toshiba's lawyer said at Tuesday's hearing the Japanese conglomerate is close to reaching an agreement with SCANA to cap Toshiba's liability the V.C. Summer project in South Carolina, which should help ease Toshiba's financial stress while it tries to sell its coveted chip business. 

Toshiba has reached a similar agreement Southern for the Plant Vogtle project in Georgia.