Toshiba turned to the lawyers in connection with the possible bankruptcy of Westinghouse

According to the source, referring to informants familiar with the situation, Toshiba has applied to the Japanese law firm for help in assessing the potential financial damage in case you decide to carry out bankruptcy Westinghouse — the American division of Toshiba, working in the field of nuclear energy.

Bankruptcy, providing protection from creditors, is considered as one of options of actions to prevent further losses associated with the activities of Westinghouse.

Toshiba problems began when it became aware of a significant excess of estimates in construction of two power plants in the United States. The result was the cancellation of 6.3 billion dollars, forcing the company to emergency measures — the allocation of production chips in the independent enterprise with the subsequent sale of parts thereof. Furthermore, Toshiba does not exclude the sale of the semiconductor business.

Analysts say that even bankruptcy will not save Toshiba from the burden of contingent liabilities in the amount of about $ 7 billion, as the company was a guarantor of Westinghouse, following accepted industry practice.

In the middle of February, the expert group Toshiba has already been sent to Westinghouse to assess the situation with the assets in place. According to preliminary estimates, the bankruptcy Westinghouse will lead to increased losses to Toshiba, at least 2.6 billion dollars.

Source: Reuters

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