Toshiba Corp. is considering issuing preferred shares to raise ¥300 billion ($2.66 billion) to avoid falling into negative net worth when it books a huge write-down on its nuclear business, sources close to the matter said Saturday.
The industrial conglomerate might issue nonvoting preferred shares convertible to stock in the flash memory business it will spin off, the sources said.
Toshiba said in December that it could book an impairment loss of "several billion dollars" on its U.S. nuclear business. The losses could reach ¥700 billion, with Toshiba facing the risk of reporting greater liabilities than assets when it posts its business results for the year ending March 31.