Westinghouse files for bankruptcy
Collapse of Toshiba’s US nuclear unit results in the Japanese company putting its prized NAND memory chip unit up for sale
Toshiba projected its annual loss could more than double to a record ¥1.01-trillion ($9.1bn) as its US nuclear unit Westinghouse Electric filed for chapter 11 bankruptcy. The collapse of Westinghouse, once the linchpin of Toshiba’s plans to diversify away from consumer electronics, caps a disastrous run for the Japanese conglomerate as project delays crippled earnings from the nuclear plant business. It has now put its prized memory chip unit up for sale just as it was recovering from a profit-padding scandal that claimed the scalps of senior executives. Pennsylvania-based Westinghouse, whose technology forms the basis of about half the world’s atomic units, has been grappling with project setbacks in Georgia and South Carolina, which led to Toshiba’s impairments. The forecast loss by the Japanese parent company would be a record for a Japanese manufacturer, according to Bloomberg data, and is more than double the company’s ¥390bn projection in February. "They need to start being ab...
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