Toshiba Corp. said the board of its nuclear unit Westinghouse will decide whether to file for bankruptcy, suggesting that is one option under consideration as it struggles with billions of dollars in liabilities from cost overruns on nuclear construction projects.
"Whether or not Westinghouse files for Chapter 11 is ultimately a decision for its board, and must take into account the various interests of all of its stakeholders, including Toshiba and its creditors. It is not appropriate for Toshiba to comment prematurely," the Tokyo-based company said in an emailed statement.
The electronics conglomerate has been grappling with construction delays at Westinghouse projects. Toshiba has estimated it will need to take a write-down of ¥712.5 billion ($6.2 billion), though it hasn't been able to get auditors to sign off on the final figures. The company said earlier this month that it's reevaluating Westinghouse's position within the group and it may deconsolidate the nuclear unit by selling a controlling equity stake.