Japanese company Toshiba said that there is”substantial doubt” about its ability to continue as a going concern.
The Japanese conglomerate said Tuesday that there is”substantial doubt” about its ability to continue as a going concern after it reported huge losses.
Toshiba has been hammered by the collapse of its American nuclear business, Westinghouse Electric, which filed for bankruptcy protection in the U. S. last month.
After twice missing deadlines, Toshiba ( TOSBF) reported a net loss of 648 billion yen ($5.9 billion) for the quarter ended in December. But in an unprecedented move for a major Japanese company, Toshiba filed the report without the approval of its auditors.
Japanese regulators must now decide whether to accept Toshiba’s earnings report. If not, shares in the ailing company could be delisted from the Tokyo Stock Exchange.
Here’s where things stand:
Delayed earnings and delisting threat
The refusal by auditor PwC Aarata to give its seal of approval is another embarrassing blow for Toshiba as it tries to persuade investors that it can find a way out of its crisis.
Westinghouse suffered billions of dollars in losses due to cost overruns and construction delays at nuclear plant projects in Georgia and South Carolina.
The unit’s bankruptcy means Toshiba will eventually be able to remove it from its accounts. But dumping Westinghouse could drag Toshiba to a net loss of 1 trillion yen ($9 billion) for the fiscal year that ended in March.
Related: Westinghouse Electric is filing for bankruptcy
PwC refused to sign off on the earnings report because it is still studying the results of investigations into Westinghouse’s takeover of nuclear construction company CB&I Stone & Webster in 2015, Toshiba said Tuesday.
