Investment funds established by Toshiba Corp.'s main creditor banks may invest in the company's flash memory unit as the conglomerate prepares to spin off the operation, sources have said.

Toshiba, facing huge potential losses related to its U.S. nuclear business, is likely to hold a board meeting Friday to carry out procedures to spin off its profitable unit in order to receive external assistance, the sources said Tuesday.

The funds include UDS Mezzanine Fund, established by Sumitomo Mitsui Banking Corp. and the state-owned Development Bank of Japan, and Blue Partners Fund, launched by Mizuho Bank and the DBJ.