Toshiba Corp’s lossmaking US nuclear unit Westinghouse Electric Co (WEC) has filed for bankruptcy protection, the companies said yesterday, as the troubled division wrestles with huge losses and accounting fraud claims.
The Japanese conglomerate’s board approved the Chapter 11 filing in a US court in New York, a step that temporarily shelters struggling firms as they try to restructure their affairs and debts.
Westinghouse technology is at the core of about half of the world’s nuclear reactors.
“Westinghouse Electric .... and certain of its subsidiaries and affiliates, today filed voluntary petitions under Chapter 11 of the US Bankruptcy Code,” the US firm said in a statement.
“The company is seeking to undertake a strategic restructuring as a result of certain financial and construction challenges,” it said.
Toshiba has warned it was facing a writedown topping ￥700 billion (US$6.3 billion) at Westinghouse.
Toshiba shares have lost more than half their market value since late December when the firm warned of a flood of red ink at Westinghouse and said it was investigating whistle-blower claims of possible accounting fraud by senior executives at the division.
Japanese financial regulators have given the company until April 11 to publish results for the October-December quarter, which were originally due last month.
Toshiba said that net loss in the current fiscal year ending March could balloon to ￥1.01 trillion, well up from an earlier projected annual loss of ￥390 billion.
“Since December 2016, WEC and Toshiba have been working to determine the scale of the possible loss, investigate the causes, and to implement preventive measures and actions,” Toshiba said in a statement.
Westinghouse, which employs about 12,000 people, has had delay problems with construction of so-called AP1000 reactors in Georgia and South Carolina.
The division was once hailed by Toshiba as a future growth driver after the 2011 Fukushima Dai-ichi nuclear accident brought new business in Japan to a screeching halt.
However, the US firm has been hit by the project delays and cost overruns while weakening prospects for the nuclear power industry globally have also weighed on its fortunes.
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
NERVOUS MARKET: With the infection sources still unknown for three COVID-19 cases that had departed Taiwan, investors have become uneasy, an analyst said Local shares yesterday came under heavy downward pressure, falling more than 1 percent as renewed fears over a possible increase in domestic COVID-19 infections hit market sentiment after the nation last week reported a case related to a Belgian national. Selling focused on the bellwether electronics sector, led by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which pushed down the broader market as investors ignored gains posted by tech heavyweights on the US market at the end of last week, dealers said. The TAIEX closed down 151.77 points, or 1.2 percent, at 12,513.03, on turnover of NT$231.43 billion (US$7.84 billion). Foreign