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Two weeks after Westinghouse bankruptcy protection move, owner Toshiba expresses first doubt over whether it can continue as a going concern
Two weeks after nuclear power station builder Westinghouse filed for Chapter 11 bankruptcy protection, its owner Toshiba Corp has for the first time expressed doubt over whether it can continue as a going concern.
Citing the huge losses at its US nuclear subsidiary, the Japanese company issued the warning today alongside its delayed earnings for the quarter to December 31.
Released, after two delays, but without the approval of its auditor, Toshiba reiterated that it anticipates a net loss of Yen1.01trn (US$9.1bn) for the year ended March 31, 2017.
READ: Westinghouse files for bankruptcy protection …
In its report, the firm Toshiba said: “There is substantial uncertainty regarding the company’s ability to continue as a going concern.”
It added, however, that it hopes to remove the going-concern warning by selling assets including its semiconductor unit, among other steps.
Not proper …
Toshiba said its auditors did not sign off on the latest results because they said could not be certain that earlier accounting for Westinghouse was proper.
Toshiba is wrestling with a US$6.3bn writedown on its US nuclear business, with Westinghouse having suffered huge cost overruns at two US projects in Georgia and South Carolina, which are now estimated to cost US$11bn more than originally budgeted.
The difficulties at Westinghouse have sent Toshiba shares into freefall, losing more than 60% since the company first unveiled the problems in December 2016.
In February, the company’s chairman stepped down as it delayed publishing its results over disagreements with its auditors.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/176308/two-weeks-after-westinghouse-bankruptcy-protection-move-owner-toshiba-expresses-first-doubt-over-whether-it-can-continue-as-a-going-concern-176308.html
