Economy

Toshiba Reportedly Approves Chapter 11 Filing for its Nuclear Unit Westinghouse

Toshiba Reportedly Approves Chapter 11 Filing for its Nuclear Unit Westinghouse

US nuclear developer Westinghouse Electric Co plans to seek bankruptcy protection from creditors on Thursday as it struggles to limit losses that have thrown its Japanese parent Toshiba Corp into crisis, people familiar with Toshiba's thinking said.

The costs for the United States reactors will be even greater if construction of the four AP1000 reactors continues at the Vogtle and VC Summer nuclear plants - and the reactors are only 40 and 31% percent complete respectively.

Scana Corp. and Southern Co. fell after Toshiba Corp.'s Westinghouse, the nuclear power-plant builder contracted to install reactors for the US utilities, filed for bankruptcy.

Westinghouse is constructing eight AP1000 pressurized water reactors - four in the US (two each at Vogtle and Summer) and four in China (two each at Sanmen and Haiyang) - with S&W as its consortium partner.

Westinghouse Electric Co.'s decision to file bankruptcy has global ramifications, but locally the greatest impact could be felt in the township where the company is headquartered.

"Westinghouse has obtained $800m (£640m) in debtor-in-possession (DIP) financing from a third-party lender to help fund and protect its core businesses during its reorganisation".

A Chapter 11 filing for Westinghouse would be decided by the US unit's board and would not require approval by Toshiba's shareholders, It could increase charges related to the unit to 1 trillion yen ($9 billion) from a publicly flagged 712.5 billion yen estimate, sources have said. Toshiba said Westinghouse-related liabilities totaled $9.8 billion as of December, making it one of the industry's most costly collapses to date; it had earlier estimated writedowns would swell to $6.3 billion.

The joint venture for the Sellafield plant told Sky News it remained "business as usual".

Partisan reaction from local reps after Republican effort to dump Obamacare dies
Amelia Beesley, 31, general manager of a boutique fine wine shop in Johns Creek, Ga., is photographed March 24, 2017. Millions more shared her view, and #KillTheBill was a top trending topic on Twitter on Friday afternoon.

Westinghouse's shares are split between Toshiba (87%), KazAtomProm (10%) and IHI Corporation (3%).

Toshiba on Monday reiterated a previous statement that it was premature to comment on a potential bankruptcy.

Analysts said Toshiba paid too much for Westinghouse, forcing it to maintain an aggressive nuclear power plant sales forecast. Instead, Westinghouse has saddled the Japanese company with mounting losses.

The deal was supposed to help Westinghouse complete the USA reactor projects.

Westinghouse, which was bought by Toshiba in 2006, has suffered billions of dollars in losses due to delays and cost overruns at nuclear plants under construction in Georgia and SC.

"NuGen is continuing to develop its Moorside Project to deliver three Westinghouse AP1000 reactors in West Cumbria". Other sources have said the Japanese government is likely to block a sale to Foxconn due to its deep ties with China. A consortium led by South Korea's SK Hynix Inc has reportedly offered to pay more than $9 billion for a majority stake in Toshiba Corp's memory chip business. USA regulators and countries around the world were then also evaluating other proposals for nuclear projects.

In January the company announced the subsidiary may have overpaid - by several billion dollars - for another nuclear construction and services business. Toshiba manufactured Japan's first light bulb and gave the country its first electric washing machines, vacuum cleaners and microwave ovens.


  • USA  preparing charges against North Korea over Bangladesh heist

    USA preparing charges against North Korea over Bangladesh heist

    It was unclear when or if any charges would be filed but any case might implicate North Korea without charging North Korean officials.
    Permit Approving Keystone Pipeline To Be Signed By Monday

    Permit Approving Keystone Pipeline To Be Signed By Monday

    Spokesman Terry Cunha said the company was working closely with the State Department. "We're looking at new factors", Toner said. The $8 billion pipeline project would pass through multiple USA states: Montana, South Dakota, Nebraska, Kansas and Oklahoma.

    Google redesigns its mobile app and website with tappable search shortcuts

    An update for Google News & Weather is set to roll out this week, centered entirely on bringing more headlines to your eyeballs. This is certainly a feature that should have been added to the app for a while, and we are curious to see if it become popular.
  • Rouhani hints at 'big development in energy cooperations' between Russian Federation  and Iran

    Rouhani hints at 'big development in energy cooperations' between Russian Federation and Iran

    Prime Minister Dmitry Medvedev will also hold separate discussions with Rouhani and several agreements are expected to be signed. The talks were expected to center on Russian arms supplies to Tehran and on Russian investment in Iran's energy sector.

    Canada Is About To Fully Legalise Marijuana

    Announcing the legislation in April would fulfill the promise the Liberal government made on April 20, 2016, to do so this spring. The plan calls for the Canadian federal government to maintain "safety" standards for the drug and to license producers.
    Brazilian president defends meat amid scandal

    Brazilian president defends meat amid scandal

    South Korea had already called off a short-lived ban on chicken imports from Brazil's BRF SA on Tuesday, after just one day. Two other countries - Egypt and Chile - announced Saturday the resumption of meat imports from Brazil, with exceptions.
  • YouTube Loses Major Advertisers Due to Distasteful Videos

    YouTube Loses Major Advertisers Due to Distasteful Videos

    In Alphabet's latest earnings, advertising revenue was $22.4 billion, while its total revenue for the quarter was $26.1 billion.
    Unanimous Supreme Court Expands Scope of Special Education Rights

    Unanimous Supreme Court Expands Scope of Special Education Rights

    He said it would lead to schools more carefully tracking the progress of special needs students. In that case, a child with autism was clearly not making sufficient progress in public school.
    North Korea's new propoganda video depicts strike on America

    North Korea's new propoganda video depicts strike on America

    North Korea on Sunday accused the United States of maintaining a policy of aggression against it, a local media report said. The secretary warned that all options, including military action, are on the table in dealing with the communist nation.
  • Trump's lawyers: 'Apprentice' contestant can't sue president

    Trump's lawyers: 'Apprentice' contestant can't sue president

    Jones and determined unanimously that no man is above the law and that includes the president of United States", Allred said . He said during the final presidential debate that the women just wanted "10 minutes of fame", according to court documents .

    Assailant shot near United Kingdom parliament, at least a dozen injured

    The arrests bring the total number of people in police custody to nine, with one woman having been released on bail. He added that police "have seized 2,700 items from our searches including massive of amounts of computer data".
    S&P, Nasdaq little changed; Dow dragged down by Nike

    S&P, Nasdaq little changed; Dow dragged down by Nike

    About 8.3 billion shares changed hands in US exchanges, compared with the 7.1 billion daily average over the last 20 sessions. Advancing issues outnumbered declining ones on the NYSE by a 1.18-to-1 ratio; on Nasdaq, a 1.33-to-1 ratio favored decliners.