The Toshiba Meltdown 0ver US New Nuclear Plants

They get most of the new fuel ore from the Russians and there is no centrifuging in the USA. Everything is controlled by foreigners.    

Toshiba’s loss from N-unit may hit ¥700 billion

8:36 pm, January 19, 2017

Jiji Press TOKYO (Jiji Press) — Toshiba Corp.’s loss from its nuclear power plant business in the United States may balloon to as much as ¥700 billion, it was learned Thursday.

As the massive loss will inevitably lead to a sharp decrease in its capital, the electronics and machinery giant is considering receiving capital injection for its mainline semiconductor business and seeking financial support from the government-affiliated Development Bank of Japan, informed sources said.

Toshiba will also speed up work to map out a reconstruction program through talks with its creditor banks, the sources said.

Behind the massive loss is a surge in nuclear plant construction costs in the United States.

In late 2015, Toshiba acquired a U.S. nuclear plant builder through U.S. subsidiary Westinghouse Electric Co. Later, the Toshiba group faced an unexpected increase in costs for constructing four nuclear power reactors in the United States, according to the sources.

Previously, Toshiba had told the creditor banks that its nuclear plant-related loss would likely total between ¥100 billion to ¥500 billion.

Currently, Toshiba is working with an auditing firm to finalize the total amount of the loss, the sources said.

As of the end of September last year, Toshiba’s equity capital stood at ¥363.2 billion.

Due to the possibility of Toshiba seeing its debts exceed assets because of the heavy loss, the company is considering spinning off its flash memory division and accepting investment for the business from outside of its group, the sources said.

Toshiba has requested the creditor banks to maintain their loans until the end of February. To replenish its capital, Toshiba may study measures such as issuing preferred shares that do not carry voting rights and taking on subordinated loans, part of which can be counted as capital, according to the sources.