TSE Decides to Keep Toshiba Listed for Now (News)
Tokyo, Oct. 11 (Jiji Press)—The Tokyo Stock Exchange said Wednesday that it will end the designation of Toshiba Corp. as a "security on alert" on Thursday, allowing the troubled electronics and machinery giant to remain listed for the time being.
The TSE said that after examining the company's measures to prevent accounting irregularities and interviewing executives, it recognized that Toshiba's internal management system "has reasonably improved."
Following the TSE decision, Toshiba issued a statement vowing to further improve its internal controls and make every effort to restore trust in the company.
Under TSE rules, Toshiba will still be delisted from Japan's biggest stock exchange unless it averts two straight years of negative net worth, at the end of fiscal 2017 next March.
The company aims to resolve its negative net worth, which totaled ¥552.9 billion at the end of March this year, by using proceeds from the planned sale of subsidiary Toshiba Memory Corp to a Japanese-U.S.-South Korean consortium led by US private equity firm Bain Capital.[Copyright The Jiji Press, Ltd.]