Tuesday, 14 February 2017

Toshiba's financial woes sadly deepen


The chaos at Toshiba, the Japanese corporate giant, deepened Tuesday, with its chairman resigning and the company saying it would book a $6.3 billion loss related to its U.S. nuclear business.

Analysts are now speculating about the possibility that Toshiba, which employs almost 200,000 people in Japan and has significant investments in the United States, may have to file for bankruptcy.

“This is one of Japan’s historic corporations and it’s very important to the Japanese economy, so this could be very significant for Japan,” said Tom O’Sullivan, a Tokyo-based energy analyst. “It would even impact Japan’s sovereign credit rating if there’s a knock-on effect.”