Toshiba Seeks More Funds for Restructuring

December 29, 2015, 1:36 PM UTC
Toshiba Corp. President Masashi Muromachi Group Interview
The Toshiba Corp. logo is seen through trees atop the company's headquarters in Tokyo, Japan, on Thursday, Oct. 1, 2015. Toshiba said it has identified 30 more executives involved in an accounting scandal that has already led to resignations of three former presidents and reduced reported profit by about $1.3 billion. Photographer: Kiyoshi Ota/Bloomberg via Getty Images
Photograph by Kiyoshi Ota — Bloomberg via Getty Images

Toshiba Corp, reeling from a $1.3 billion accounting scandal, intends to ask for an additional 300 billion yen ($2.49 billion) in credit lines by the end of January to fund a large-scale restructuring, the Nikkei business daily reported.

Toshiba is likely to approach multiple financial institutions including Mizuho Bank and Sumitomo Mitsui Banking Corp, Nikkei reported, citing Chief Financial Officer Masayoshi Hirata.

The company, which overstated profits beginning in the business year through March 2009, has begun restructuring after an investigation of its accounts revealed businesses in poor health.

Toshiba is also negotiating the sale of equipment maker Toshiba Medical Systems, which would likely boost its capital base to over 1 trillion yen by the middle of fiscal 2016, Nikkei said.

The company said last week it would book a record net loss this year and cut around 5% of its workforce as the sprawling conglomerate focuses on chips and nuclear energy.

The company’s restructuring is expected to trim fixed costs by about 300 billion yen in fiscal 2016 compared with the fiscal 2015 projection, Nikkei said.

Toshiba was not immediately available for comment.


Read More

CryptocurrencyInvestingBanksReal Estate