Toshiba Corp., the embattled electronics and machinery giant once deemed a blue-chip company representative of Japan Inc., is seeking to survive the latest crisis deriving from huge losses in its nuclear power business in the United States by selling off its cash cow semiconductor unit to raise funds to pay off debts and restore financial health. While it remains uncertain whether the sale of memory chip business will proceed as hoped, Toshiba needs to realize that its survival will still depend on fixing its management and governance problems that brought it down to its current low state.

On Tuesday, Toshiba released its earnings report for the April-December period of 2016 without approval from its auditing firm — an extremely rare move for a listed company — after twice postponing the report due to differences with the auditors over the losses at the troubled U.S. unit Westinghouse Electric Co. The unaudited report said that Toshiba incurred a net loss of ¥532.5 billion over the period and that it had a negative net worth of ¥225.6 billion at the end of December — meaning that its debts were in excess of assets by that sum. Toshiba earlier said it expects its losses in the full year to March to reach ¥1.01 trillion and that the debt excess would reach ¥620 billion.

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