Toshiba is seeking a credit line worth $2.5 billion, the second in three months as the company struggles to recover from a multi-billion dollar accounting scandal.
If Toshiba receives its latest credit line, for which the company will apply by January, its total loan facility would be more than 1 trillion yen, or $8.3 billion, reported Bloomberg. The company received its first credit line of 400 billion yen, or $3.2 billion, in September.
Toshiba announced its accounting problems in April this year, revealing that it had overstated its profits by nearly $2 billion over six years. It was the biggest ever accounting scandal connected to a Japanese company.
The revelation set off a string of issues that have beleaguered the 140-year-old Japanese company. Its CEO and president, Hisao Tanaka, stepped down in July, and it announced last week that it would layoff nearly 7,000 consumer electronics workers as it overhauls its business to focus on chips and nuclear energy. Total layoffs could hit 10,000, the company said. Toshiba will also sell its television manufacturing plant in Indonesia.
All these restructuring maneuvers are expected to cost Toshiba around 550 billion yen, or $4.53 billion, this fiscal year. The company will use the two credit lines to finance these expenses. President Masashi Muromachi said Toshiba will not raise any money from the public markets for two years, reported Bloomberg.
