Toshiba's troubled US nuclear unit, Westinghouse Electric, has filed for Chapter 11 bankruptcy protection as its Japanese parent seeks to limit losses that have plunged it into crisis.
The filing will allow Pittsburgh-based Westinghouse, whose nuclear plant projects have been dogged by delays and cost overruns, to renegotiate or break its construction contracts, although the utilities that own the projects would likely seek damages.
For Toshiba, the aim is to mitigate liabilities stemming from guarantees it provided backing the contractor's work.
Toshiba said on Wednesday that Westinghouse-related liablities totalled $US9.8 billion ($A12.8 billion) as of December.
Westinghouse said it has secured $US800 million in financing to fund and protect its core businesses during its reorganisation.
Toshiba, whose shares have crashed as Westinghouse's problems surfaced, said in a statement it would guarantee up to $US200 million of the financing for Westinghouse, adding the troubled unit would be removed from its consolidated books at the end of March.
Westinghouse, which made the filing at the US Bankruptcy Court for the Southern District of New York, said on Tuesday its operations in Asia, Europe, the Middle East and Africa would not be affected by the filing.
"We are focused on developing a plan of reorganisation to emerge from Chapter 11 as a stronger company while continuing to be a global nuclear technology leader," Westinghouse Interim President and chief executive Jos Emeterio Gutirrez said in a statement.
Share
