CHAPTER 11 PROTECTION
Toshiba pushes for Westinghouse bankruptcy filing
A Westinghouse bankruptcy filing will help limit future losses for Toshiba, but not enough to draw a line under the company’s problems
Tokyo — Toshiba Corporation wants its US nuclear unit to file for chapter 11 protection from creditors as early as Tuesday, according to a source with direct knowledge of the matter, seeking a quick ring-fencing of losses before the Japanese parent’s financial year ends. While a Westinghouse bankruptcy filing would help limit future losses for Toshiba, it still falls far short of drawing a line under its problems. Any filing would trigger complex negotiations between Toshiba, the nuclear unit and creditors, and could embroil the US and Japanese governments given the scale of the collapse and US state loan guarantees for new reactors. A worry for Prime Minister Shinzo Abe is that a bankruptcy would give President Donald Trump cause to criticise Japanese firms operating in the US. "Westinghouse is a major employer and nuclear industry company with ongoing nuclear new build projects in two different states, one of which is supported by US department of energy loan guarantees," said Geo...
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