The future isn’t looking so bright for Japanese company Toshiba, as this Tuesday, they mentioned the “substantial doubt” about the ability to continue after the huge losses, reported recently.
According to CNN Money, the conglomerate has been seriously affected by the collapse of its U.S.-based nuclear business, Westinghouse Electric, filed for bankruptcy protection, last month.
Auditors will decide the future
Toshiba reported a net lost of 648 billion yen (approximately $5.9 billion) for Q4 of 2016, after missing the deadlines two times. Also, in a move which can be considered a premiere for such an important Japanese company, they filed the report without waiting for the approval of its auditors.
Currently, Toshiba is waiting for the Japanese regulators’ decision, who should decide if they can accept the earnings report. In case of a negative answer, the company’s shares could be removed from the Tokyo Stock Exchange, which would definitely be a big hit.
In an attempt to maintain themselves on the surface, the Japanese company decided to sell a majority stake in its computer prized business, CEO Satoshi Tsunakawa declaring that he’s looking forward to obtain at least 2 trillion yen ($18 billion) for the package.
Until now, Foxconn, one of Apple’s main suppliers, made a first offer of 3 trillion yen ($27 billion), but it is still unknown if Toshiba accepted the offer, as they declined to comment on the reports, while Foxconn didn’t even respond to the comment requests.
The chip business shouldn’t leave Japan
Trying to keep the memory chip business in the country, the Japanese company made an appeal to several Japanese companies, asking them to work together and buy a stake. If this sale becomes reality, alongside other assets, Toshiba would be able to remain stable, from a financial point of view.
As for Westinghouse, Toshiba’s majority stake in it will be sold, under the strict supervision of the bankruptcy court, according to CEO Satoshi Tsunakawa.
