Future of Toshiba in serious doubt
The chips are down for Japanese conglomerate
Toshiba is in more major financial trouble having filed its business results without the approval of its auditor PricewaterhouseCoopers.
Toshiba has already delayed filing the results on two occasions and it's feared the conglomerate faces being delisted by the Tokyo Stock Exchange.
The company vacated the global TV market in January 2015 but its financial woes now centre around its U.S. nuclear subsidiary, Westinghouse Electric, where the accountants are calling in to question Toshiba’s figures. A development in the South East of the United States has faced massive cost over-runs that have led Toshiba to estimate a $9 billion annual net loss.
The action to publish results without auditor endorsement is unheard of for a major Japanese firm and the spotlight now falls on the Tokyo Stock Exchange to see what action will be taken.
Toshiba has put its huge (and profitable) computer chip business up for sale with Foxconn believed to have offered up to 3 trillion yen ($27 billion) for the much prized asset, according to the Wall Street Journal.
The company also said it was considering a public offering for its Swiss based smart meter group, Landis+Gyr which could raise around $2 billion dollars
"There are material events and conditions that raise substantial doubt about the company's ability to continue as a going concern," the company said in a statement and continued with: "At the present time, substantial doubt about the company's ability to continue as a going concern exists as of the filing date of the quarterly report."
Toshiba executives are set to hold a news conference shortly.
Sources: Reuters, BBC
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