Japan’s Toshiba Corp filed twice-delayed business results on Tuesday without an endorsement from its auditor, increasing the likelihood that the nuclear-to-TVs conglomerate will be delisted.
Japan’s Toshiba Corp will make every effort to avoid being delisted by the Tokyo Stock Exchange, the company’s CEO said on Tuesday, after releasing delayed third-quarter results with a disclaimer from its auditor.
“The decision on any delisting is for the stock exchange to make,” Satoshi Tsunakawa said at a press briefing in Tokyo.”We will do our utmost to avoid it.”
Toshiba filed twice-delayed business results on Tuesday without an endorsement from its auditor, increasing the likelihood that the nuclear-to-TVs conglomerate will be delisted.
The filing carried a disclaimer from auditor PricewaterhouseCoopers (PwC) Aarata that it was unable to form an opinion of the results. The move is unprecedented for a major Tokyo-based firm and puts the Tokyo Stock Exchange center stage as it weighs the pros and cons of forcing Toshiba to delist.
Failing to act tough with Toshiba would bring into question authorities’ credibility in maintaining standards for investors but a delisting would complicate the crisis engulfing the firm, increasing
financing costs and exposing it to further lawsuits from angry shareholders.
Accountants have been questioning the numbers at U. S. nuclear subsidiary Westinghouse Electric, where massive cost overruns at four nuclear reactors under construction in the Southeastern United States have forced its Japanese parent to estimate a $9 billion annual net loss and take drastic measures.
