Westinghouse Electric, the USA nuclear power plant giant, has filed for bankruptcy protection, threatening a further blow to the UK's atomic energy programme.
Analysts said Toshiba paid too much for Westinghouse, forcing it to maintain an aggressive nuclear power plant sales forecast.
In the wake of mounting losses at its USA nuclear arm Westinghouse, which filed for Chapter 11 protection from creditors on Wednesday, Toshiba has put up the business for auction.
Because of that, the industrial conglomerate announced that it might book a loss of over 1 trillion yen equal to $9 billion for the year that ends this month, which is up from a forecast earlier of a 390 billion yen loss.
Westinghouse said it has arranged $800 million in debtor-in-possession financing so that it can continue to service customers while restructuring its business.
Toshiba, whose shares have crashed as the nuclear problems surfaced, said it would guarantee up to $200 million of the financing for Westinghouse.
"Since December 2016, WE and Toshiba have been working to determine the scale of the possible loss, investigate the causes and to implement preventive measures and actions", the company said.
Westinghouse, the United States nuclear unit of Japanese nuclear company Toshiba, has filed for U.S. bankruptcy protection after struggling with hefty losses.
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Westinghouse Electric filed for Chapter 11 bankruptcy protection on Wednesday, as the nuclear energy leader focuses on reorganizing.
Toshiba has previously warned it was facing a write-down topping ¥700bn ($6.3bn) at Westinghouse.
Tsunakawa said offers received so far for the unit are likely to allow the company to avoid falling into negative shareholder equity.
Chris Jukes GMB senior organiser said: "Westinghouse is to build the reactors for the new plant".
The U.S. government has granted loan guarantees totaling $8.3 billion to the utilities commissioning the Georgia project. The drop of oil prices combined with the Three Mile Island and Fukushima accidents made nuclear power less lucrative, and plant construction kept getting stonewalled, said Ogasawara. The U.S. nuclear woes ultimately threw Toshiba into crisis.
The utilities said in a statement that, anticipating a bankruptcy, they have worked with Westinghouse on an agreement to continue work at Summer while the utilities decide how to move forward. Moreover, the USA government would have to approve any sale to another foreign company.
According to Stephen Byrne, COO at Scana's South Carolina Electric & Gas Co., Toshiba assumed that taking control of Stone & Webster in 2015 would improve productivity at both US construction sites by a third.
Westinghouse's troubles are said to have stemmed from cost overruns on four nuclear reactors that are now under construction, Reuters noted.
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