Toshiba is about to bankrupt
Things are not going well at Toshiba. The gigantic losses that the company had with Westinghouse, which they bought in 2005 for $ 5.4 billion, shook down the country.
It turns out that the nuclear black hole in Westinghouse, which appeared to have lost $ 4.8 billion in April-December 2016, may not be so limited.
The investigation, which followed Westinghouse’s major nuclear power plants in the United States, revealed that the company was more than a decade old in December-March. Accordingly, it is expected for them to announce a loss of $ 9.2 billion in the nuclear power plant business in the coming days.
Satoshi Tsunakawa, CEO of the company, which had to warn Toshiba’s shareholders, confessed to the media that the company’s situation was not at all good.
Toshiba’s financial reports to be disclosed in the upcoming days will be reviewed by Japanese financial bureaucrats and if the bureaucrats find their way in the financial reports dangerous, they will be able to remove Toshiba shares from the Tokyo stock exchange. This is a nightmare for investors holding Toshiba shares in Japan.
On the other hand, Toshiba has also filed a request for protection against the US. Due to increased production costs, the company has been forced to sell electricity generated at nuclear power plants at a lower price, causing harm to people as they use electricity. After reviewing the case of bankruptcy protection in the US, Westinghouse may decide to sell nuclear plants under their own supervision. The only problem here is that there are no investors who would like to produce nuclear electricity, which is very expensive, while companies such as Tesla sell solar free electricity generation systems rapidly. In other words, Toshiba may have to suffer a severe damage from the Westinghouse plants.