Toshiba seeks money to pay for restructuring plan

Toshiba seeks money to pay for restructuring plan

Toshiba seeks another 300 billion yen (2.272 billion euro) credit line to pay for its social plan.

Accounting scandal leads to restructuring

The revelation of its accounting mishap, with embellished profits since 2009, has put Toshiba with its back against the wall. The scale of the fraud reached 1.2 billion euro, three times higher than anticipated at first, which means that the Japanese electronics group (with copying machines, laptops, hard disks, televisions and medical systems) has to sell divisions and let staff go.

 

Its computer and household electric appliances divisions have been put up for sale, while 6,800 people will lose their jobs and more than 10,000 in total when the entire restructuring plan goes through.

 

Such a restructuring plan also costs money, money Toshiba hopes to get through an additional 300 billion yen loan. Sumitomo Mitsui Banking Corp, Sumitomi Mitsui Trust Bank and Mizoho Bank already gave a 400 billion yen (3.029 billion euro) loan in September, but with the additional 300 billion yen loan, the total loan amount will reach more than 1,000 billion yen (7.573 billion euro).

 

Credit rating takes a blow

Last week, Toshiba said it will end its fiscal year with a 550 billion yen (4.165 billion euro) record loss and its decent credit rating will also take a blow now. Moody's places Toshiba only two steps above the so-called junk bonds.

Questions or comments? Please feel free to contact the editors


Pieter Haas, CEO Ceconomy: "We sell the consumer a digital life"

03/11/2017

MediaMarkt’s parent company, Ceconomy, has the key to consolidate the European electronics industry even more. The retailer will sell services and solutions: “We help people make the right decisions.”

Ceconomy continues growth in transitional year

26/10/2017

Ceconomy, a former part of German Metro Group, achieved a 4.6 % fourth quarter turnover increase to 5.264 billion euro. Media Market’s parent company mainly made strides online.

Fnac Darty grew 6 % in third quarter

20/10/2017

Fnac Darty has raised its third quarter turnover by 6 % to 1.792 billion euro, with growth in the Benelux as well. The company also revealed the integration of both companies is ahead of schedule.

Samsung CEO resigns despite record profit

13/10/2017

South Korean Samsung has managed a record profit in its past quarter thanks to strong chip sales. However, one of its three CEO’s still decided to resign.

Fnac-Darty introduces new board

12/10/2017

A little more than a year after Fnac and Darty merged and several months after CEO Alexandre Bompard suddenly moved to Carrefour, the French entertainment and electronics group Fnac-Darty introduced its new board.

Twelfth straight quarter of weaker computer sales

12/10/2017

Desktop computer sales have slumped once more in the third quarter, down 3.6 %. It is the third straight year of dwindling sales, according to research firm Gartner.

Back to top