Toshiba share price lunges to lowest in decades

Writedowns associated with Toshiba’s nuclear business have seen the stock plunge to a four-decade low.

The FT reports that the Japanese conglomerate is in talks with the Bank of Japan, with a view to being assisted with state-ba Toshiba Westinghouse cked capital after stock plummeted to as much as 26 per cent.

A disastrous nuclear deal in the US is at the centre of the company’s woes. Toshiba had to make writedowns of “several billion dollars” related to US unit Westinghouse’s $229m acquisition last year of Chicago Bridge & Iron’s nuclear construction subsidiary, Stone & Webster.

Because of the impact of the problem, the company says it is considering further writedowns of between $1bn and $4.5bn. But analysts have since estimated that the total writedown, to be announced by mid-February, could be between $5bn and $8bn.

Toshiba convened an emergency meeting of its bank lenders in early January after several banks expressed concerns over extending loans to the company.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...