Toshiba's Westinghouse will file for bankruptcy later this month

 
Courtney Goldsmith
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Views Of Toshiba Corporation's Tokyo headquarters amid Accounting Scandal
Toshiba's Westinghouse has racked up a huge bill (Source: Getty)

Toshiba's US nuclear arm, Westinghouse, will file for bankruptcy on 31 March, according to reports.

The troubled Japanese conglomerate expects a Chapter 11 filing will cause charges related to Westinghouse to grow to around 1 trillion yen (£7.2bn), up from its estimate of 712.5bn yen, sources told Reuters.

Filing will help the firm limit risks from future losses, however.

Westinghouse has been hit by massive cost overruns at two of its US nuclear projects in Georgia and South Carolina.

To help it stay afloat through the writedowns, Toshiba is looking to sell part or even all of its prized memory chip business. It's also mulling the sale of a majority stake in Westinghouse and is apparently in talks with Korea Electric Power Corp to sell its stake in the UK nuclear business NuGen, which is building three reactors at the Moorside site on the coast of Cumbria.

Toshiba is set to report its financial earnings on 11 April after already missing two deadlines.

The firm's shares closed more than seven per cent higher today after the Singapore fund Effissimo became its largest shareholder with an 8.14 per cent stake. Effissimo expects long-term gains.

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