Toshiba to Cut Off Troubled US Unit for Survival (News)
Tokyo, March 14 (Jiji Press)—Toshiba showed its intention Tuesday to remove troubled US subsidiary Westinghouse Electric from its consolidated accounting as part of its ongoing struggle to survive a severe management crisis. Toshiba has been embroiled in an accounting scandal after inappropriate bookkeeping practices came to light in 2015.
A Chapter 11 bankruptcy filing by the US nuclear plant builder is an option, Toshiba President Tsunakawa Satoshi told a press conference.
The company confirmed Tuesday that it forecasts its annual sales to plummet to some ¥4 trillion, or 60% of their peak, after the planned sale of Westinghouse and other key operations.
The Japanese electronics and machinery maker missed the deadline for releasing its April–December 2016 earnings, but received a one-month extension as it deepens its probe into accounting problems at the US subsidiary.
If Toshiba misses the new April 11 extension and fails to gain another one from the Kantō Local Finance Bureau, it will have eight days to submit the earnings or be delisted from the Tokyo Stock Exchange. To date the finance bureau has never granted any company a third extension.
The company said its shares will come under supervision starting on March 15.[Copyright The Jiji Press, Ltd. Content edited by the Nippon.com editorial team.]