{"id":24268,"date":"2017-03-14T05:50:39","date_gmt":"2017-03-14T05:50:39","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=24268"},"modified":"2017-03-14T05:50:39","modified_gmt":"2017-03-14T05:50:39","slug":"toshiba-asks-second-third-quarter-extension-expands-westinghouse-probe","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/technology\/toshiba-asks-second-third-quarter-extension-expands-westinghouse-probe.html","title":{"rendered":"Toshiba asks for second third-quarter extension, expands Westinghouse probe"},"content":{"rendered":"

\n\tToshiba asks for second third-quarter extension, expands Westinghouse probe<\/span><\/span><\/strong><\/span>
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\n\tJapan's Toshiba Corp said it has asked regulators to extend its Tuesday deadline for official third-quarter earnings for a month, as its expands a probe into problems at its U.S. nuclear unit Westinghouse.<\/span><\/span><\/span>\n<\/p>\n

\n\tRequesting its second extension, the company said its auditing committee had confirmed that certain Westinghouse senior managers had exerted 'inappropriate pressure' in the accounting for an acquisition of a U.S. nuclear power plant construction company in its third-quarter earnings.<\/span><\/span><\/span>\n<\/p>\n

\n\tIt now needs to check whether any pressure was exerted in preceding quarters as it would also be filing nine-month results and has requested an extension until April 11, it said in a statement to the Tokyo Stock Exchange.<\/span><\/span><\/span>\n<\/p>\n

\n\tToshiba will also expand the scope of the probe to see if 'other inappropriate pressures' were also exerted, it said without elaborating on what they could be.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe extension request, which comes after the beleaguered TVs-to-construction conglomerate first postponed the release of audited earnings a month ago, sent Toshiba's shares sliding 8 percent in morning trade.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe request only underscores deepening woes for the deeply troubled TVs-to-construction conglomerate.<\/span><\/span><\/span>\n<\/p>\n

\n\tPlagued by cost overruns at U.S. projects in Georgia and South Carolina, Westinghouse has hired bankruptcy lawyers as an exploratory move, sources have said – an option that could help Toshiba limit future losses.<\/span><\/span><\/span>\n<\/p>\n

\n\tThose projects are being handled by the ill-fated U.S. nuclear power plant construction company that Westinghouse bought from Chicago Bridge & Iron in 2015. Toshiba has already flagged a $6.3 billion writedown in preliminary third-quarter estimates due to the cost overruns.<\/span><\/span><\/span>\n<\/p>\n

\n\tTo offset the upcoming writedown, Toshiba is also rushing to sell most or even all its prized memory chip business, which it values at at least $13 billion.<\/span><\/span><\/span>\n<\/p>\n

\n\tChief Executive Satoshi Tsunakawa will hold a news conference at 4:00 p.m. Tokyo time (0700 GMT).<\/span><\/span><\/span>\n<\/p>\n

\n\tA source with direct knowledge of the matter said a one-month extension should be enough to work out differences with auditors.<\/span><\/span><\/span>\n<\/p>\n

\n\t"I understand auditors' skittishness but at the same time I don't think they want to be the reason for Toshiba's failure by keeping refusing to sign off," said the person, who was not authorized to discuss the matter publicly.<\/span><\/span><\/span>\n<\/p>\n

\n\tIf it fails to gain approval for an extension, it has to submit the earnings by March 27 or it could face a delisting. Financial regulators declined immediate comment on Toshiba's request.<\/span><\/span><\/span>\n<\/p>\n

\n\tToshiba is also due to submit this week a report to the Tokyo Stock Exchange on its internal controls in the wake of its latest financial woes as well the 2015 accounting scandal. That could eventually also lead to a delisting if the bourse finds Toshiba's efforts unsatisfactory.<\/span><\/span><\/span>\n<\/p>\n

\n\tSource:- http:\/\/www.reuters.com\/article\/us-toshiba-accounting-idUSKBN16L02X<\/span><\/span><\/span><\/p>\n

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