Just in:
Uweb, the Digital Asset Education Institute, Announces Successful Completion of a US$3 million Angel Funding Round // Golden Bull Award 2025 Winners Revealed // Entrepreneurs Turn to Harsh AI ‘Red Teamers’ to Stress‑Test Ideas // Qingzhen’s Zhanjie Town Leverages Ecological Resources to Drive Industrial Upgrading and Integrate Culture and Tourism for Rural Revitalization // MCP Ignites AI Agent Revolution Amid Looming Security Quagmire // Behomes Launches Behomes Hub – Cashback & Networking App for Real Estate Professionals // Caltex Commemorates SG60 with Launch of Limited Edition National Day Picnic Sets // Moroccan‐Born Duo Secures $4.2 Million to Sharpen AI Search Precision // DNA‑Crafted Nanomachines Self‑Assemble in Water // IIT Delhi and TeamLease EdTech Kick‑start AI for Healthcare Executive Programme // Baku ID 2025 Concludes: Baku Becomes the Regional Hub for Innovation // MENA Investment Banking Fees Slip Amid Equity Underwriting Lull // BRICS Pledge Cooperation, Not Confrontation With U.S. // Celebratory 911 Club Coupe Marks Half-Century Porsche Partnership // CGTN: Beauty in diversity: How wisdom at Nishan Forum inspires global modernization // Coffee Chains Join Bitcoin Mania with Bold Treasury Moves // Meta pixel ruling marks watershed in EU data privacy // $1 Bn Pact to Launch Digital Real‑World Asset Platform // Galaxy AI Elevates On‑Device Intelligence with Privacy at Core // Musk Alleges Grok Was Misled and Predicts Tech Breakthroughs //

Toshiba's Westinghouse to file for U.S. bankruptcy Tuesday: sources

1490722789

By Kentaro Hamada and Taro Fuse
| TOKYO

ADVERTISEMENT

TOKYO U.S. nuclear developer Westinghouse Electric Co plans to seek bankruptcy protection from creditors on Tuesday as it struggles with losses that have thrown its Japanese parent Toshiba Corp into crisis, people familiar with Toshiba’s thinking said.

Pittsburgh-based Westinghouse, crippled by cost overruns at two U.S. projects in Georgia and South Carolina, will file for protection under Chapter 11 of the U.S. Bankruptcy Code, the people told Reuters on Tuesday.

One of the sources has direct knowledge of the decision and one has been briefed on the matter.

Toshiba media representatives could not immediately be reached for comment outside office hours. On Monday it said it was premature to comment on a potential bankruptcy. Westinghouse also declined to comment.

A Westinghouse bankruptcy filing will help limit future losses for Toshiba, but it still falls far short of drawing a line under its problems.

The move will trigger complex negotiations between the Japanese conglomerate, its U.S. unit and creditors, and could embroil the U.S. and Japanese governments, given the scale of the collapse and U.S. state loan guarantees for new reactors.

A worry for Prime Minister Shinzo Abe is that a bankruptcy would give President Donald Trump cause to criticize Japanese firms operating in the United States.

The U.S. utilities that operate the two nuclear plants are among Westinghouse’s biggest creditors, owed the work that has yet to be completed and potential penalties, sources have said.

But one source played down potential opposition from the utilities.

“They should welcome that Toshiba, the parent, has given 800 billion yen in guarantees,” he said. “There’s not really any logic to stopping a Chapter 11 now.”

Moody’s Japan K.K. on Tuesday welcomed the prospect of bankruptcy for the parent. A Chapter 11 filing “would be credit positive, because this action could limit Toshiba’s contingent liabilities,” the ratings company said, maintaining its Caa1 corporate family rating and senior unsecured debt rating with a negative outlook.

(Reporting by Kentaro Hamada and Taro Fuse; Additional reporting by Sarah Cassella; Editing by William Mallard and Susan Thomas)

Reuters


Notice an issue?

Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.


ADVERTISEMENT