On Tuesday, the company forecast a net loss of 390 billion yen ($3.4 billion, 3.2 billion euros) for the current fiscal year to March, with losses in its atomic division topping 700 billion yen. But Toshiba's auditors figured out, way after the fact, that the company had overpaid.
Chairman Shigenori Shiga is resigning to take responsibility for the widening crisis, Toshiba said late Tuesday.
In England, Toshiba's announcement that it would withdraw from nuclear construction contracts outside of Japan hasn't played well. The company previously planned to limit the sale to 20 per cent to maintain control.
According to market reports, Toshiba is poised to book a huge loss of approximately $4 billion for the April-December period on its U.S. nuclear business.
Toshiba Corp. (TOSYY.PK,TOSBF.PK) announced a provisional outlook for the goodwill and impairment loss in Nuclear Power Business of 712.5 billions of yen with an impact on financial results of 620.4 billions of yen.
A spokesman said: "Regarding the NuGen project, while Toshiba is committed to invest in the project until the final investment decision, we will subsequently seek to sell our shares to new investor (s)". But after that hour came and went with no release, Toshiba said it was asking for a one-month delay.
As a result, Toshiba's liabilities would exceed its assets by ¥191.2 billion based on shareholders' equity for its consolidated accounts for the April-December 2016 period. Toshiba explained it received internal information about inadequate governance during the acquisition process of a U.S. nuclear construction company. "Investors want to know what will happen to nuclear and chip businesses, whether elevator operations and some of Toshiba's listed subsidiaries will be sold off". Following a series of reported losses, the company has announced that it will place its nuclear business directly under the president and downsize its overseas nuclear business.
The delay on a full update comes as it investigates the amount its Westinghouse subsidiary paid for USA construction and nuclear plant specialist CB&I Stone & Webster in 2015.
Toshiba's lawyers are now looking at whether "inappropriate pressure" had been exerted by senior Westinghouse managers on people below them who were responsible for reviewing the deal. Fallout from the scandal contributed to a group net loss a year ago of 479.4bn yen.
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