Troubled tech giant Toshiba saw its financial crisis deepen as reports suggest that it might have to book a bigger-than-expected $6 billion writedown on its U.S. nuclear business.
The fear is that any restructuring it does, including the sale of a stake in its chip business will be sufficient to address fix the company. Toshiba has also approached government-backed Development Bank of Japan (DBJ) for help which is a bad sign.
Toshiba executives will sit down with representatives from its main banks to discuss possible support. Things might not be that bleak. Sumitomo Mitsui Banking told a briefing the lender would like to support Toshiba as much as possible. The other banks have not commented.
Tosh was battered by an accounting scandal in 2015, and assaulted by write down cost overruns at projects handled by a newly acquired US nuclear power plant construction firm. All that remains is for the company to be liberally covered in vinegar and will have had its chips. Actually it will have to sell its chips which makes the whole fish and chip analogy redundant.
Sources familiar with the matter had previously flagged the size of the expected charge at more than $4.4 billion. Kyodo news agency and other domestic media said that estimates had now ballooned due to unfavorable currency rates.