Toshiba plans for its nuclear unit, Westinghouse electric, to file for bankruptcy and the end of this month, sources tell Reuters. Fred Katayama reports.
Westinghouse Electric heading for bankruptcy. Sources say its Japanese parent, Toshiba, plans to have it file for Chapter 11 on March 31. That move, they say, would inflate Toshiba's charges to $9 billion. Cost overruns at two U.S. nuclear projects have plagued Westinghouse, and Toshiba seeks to limit its future losses with a bankruptcy filing. Westinghouse's woes have thrown Toshiba, an electronics conglomerate that makes everything from computers to elevators to fluorescent lighting, into a financial maelstrom. It has put its prized semiconductor unit for sale. It's considering selling a majority stake in Westinghouse. And it has already blown past deadlines to file its earnings reports. Toshiba shares shot up nearly 8 percent in Tokyo Friday after a Singapore-based fund said it bought an 8 percent stake this month, expressing confidence in the embattled conglomerate. Parry International Trading managing director Gavin Parry said, "Given the tumultuous background of what's been going on, at least this brings a degree of something tangible to shareholders and investors." Toshiba's stock has lost half its value since mid-December after the series of financial woes put it at risk of being delisted.