block sale: The potential delay in the process of the sale of the chip operation could derail its turnaround efforts, as the sale is crucial to raise cash to make up for huge losses from its U.S. nuclear business, according to The Japan Times. Western Digital, a joint operator of Toshiba's Yokkaichi flash memory plant in Japan, has claimed it has the right to block the sale of the spun-off unit Toshiba Memory and has demanded it be allowed to take the initiative in operating the chip unit. Toshiba initially planned to close the bidding on May 19 but is now considering extending the schedule to the end of the month or later, the sources said. Toshiba officials and Western Digital Chief Executive Officer Steve Milligan held talks recently on the sale but failed to reach an agreement. Toshiba said after the filing it could post a group net loss of 1.01 trillion 8.9 billion for the fiscal year that ended March 31, the largest ever for a Japanese manufacturer, and fall into a negative net worth of 620 billion. The embattled Japanese conglomerate is reeling from massive losses related to Westinghouse Electric, which filed for Chapter 11 bankruptcy protection in March.
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