Toshiba seeking to extend
Tuesday deadline for third-quarter disclosure: sources
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[March 13, 2017]
By Taro Fuse
(Reuters) - Japan's Toshiba Corp is seeking to extend its Tuesday
deadline for submitting official third-quarter earnings due to
disagreements with auditors over issues at its U.S. nuclear unit
Westinghouse, sources familiar with the matter said.
The extension would be its second for the earnings after Toshiba
postponed a month ago to probe potential problems at Westinghouse. It
has flagged a $6.3 billion writedown for the nuclear unit in preliminary
A second extension would only underscore deepening woes for the deeply
troubled TVs-to-construction conglomerate.
Plagued by cost overruns at U.S. projects in Georgia and South Carolina,
Westinghouse has hired bankruptcy lawyers as an exploratory move,
sources have said - an option that could help Toshiba limit future
To offset the upcoming writedown, Toshiba is also rushing to sell most
or even all its prized memory chip business, which it values at at least
Toshiba is in talks with financial regulators for an extension, one of
the sources told Reuters on Monday. The sources declined to be
identified as they are not authorized to speak to media.
Toshiba declined to comment. Officials at the arm of the Finance
Ministry which oversees the filing of quarterly earnings statements
could not be immediately reached for comment.
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A logo of Toshiba Corp
is seen outside an electronics retail store in Tokyo, Japan, January
19, 2017. REUTERS/Toru Hanai/File Photo
not immediately clear what the disagreements with auditors were. A Toshiba
executive said last week that Westinghouse and lawyers were fussing over
If it fails to gain approval for an extension, it has to submit earnings by
March 27 or it could face a delisting.
A second extension would have precedent. In 2015, Toshiba also delayed the
release of its results twice due to an independent investigation over years of
Toshiba is also due to submit this week a report to the Tokyo Stock Exchange on
its internal controls in the wake of its latest financial woes as well the 2015
accounting scandal. That could eventually also lead to a delisting if the bourse
finds Toshiba's efforts unsatisfactory.
(Reporting by Taro Fuse; Additional reporting by Taiga Uranaka; Writing by
Makiko Yamazaki; Editing by Edwina Gibbs)
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