Toshiba to declare Westinghouse bankrupt
Japanese Toshiba's subsidiary company Toshiba Westinghouse Electric, the American-Japanese company servicing nuclear power plants, will be declared bankrupt due to losses reaching $7 billion with another $2 billion to be lost due to the bankruptcy procedure, according to Reuters.
Toshiba plans to file for Westinghouse Electric’s bankruptcy on March 31, as creditors are pushing for such move, fearing more losses, Reuters reports.
It is reported that Westinghouse's yearly net loss could reach $3.4 billion. Its losses in the past year were even more significant.
Westinghouse's debt of $6.3 billion is expected to remain with Toshiba.
Toshiba has asked South Korea's Korea Electric Power Corp to sponsor its Westinghouse bankruptcy reorganization
In the summer of 2016, it was reported that Westinghouse intended to build a nuclear fuel plant in Ukraine, but later the company refuted the reports.
Read alsoWestinghouse: Only Ukraine applies EU's nuclear diversification policyIn March 2008, Ukraine's national nuclear energy generating company Energoatom entered into a commercial contract with Westinghouse Electric Sweden AB (Sweden) for the supply of fresh nuclear fuel in 2011-2015 to three to six power units of Ukrainian NPPs equipped with VVER-1000 type reactors.
Energoatom and Westinghouse in 2014 agreed to expand the fuel contract and extend it until 2020.
Read alsoEnergoatom shrinks net profit by 77.8% in 2016According to Energoatom, in 2016, there have been five shipments of nuclear fuel produced by Westinghouse. Now this fuel is being used at three power units: No. 2 and No. 3 of South-Ukrainian NPP, and No. 5 of Zaporizhia NPP.