Toshiba has approved a plan to place its US nuclear unit in bankruptcy protection, a report said Wednesday, as the troubled division wrestles with multi-billion-losses and accounting fraud claims. Japan’s Nikkei business daily said Toshiba’s board gave Westinghouse Electric the green light to
Toshiba has approved a plan to place its US nuclear unit in bankruptcy protection, a report said Wednesday, as the troubled division wrestles with multi-billion-losses and accounting fraud claims.
Japan’s Nikkei business daily said Toshiba’s board gave Westinghouse Electric the green light to make a Chapter 11 filing in a US court, which temporarily shelters struggling firms as they try to restructure their affairs and outstanding debts.
Toshiba, a pillar of corporate Japan and one of its best-known brands overseas, declined to comment on the report.
Its embattled shares rose 1.19 percent to sit at 219.8 yen by the break.
The vast conglomerate has lost more than half its market value since late December when Toshiba warned over a flood of red ink at Westinghouse and said it was investigating whistleblower claims of accounting fraud by senior executives at the division.
