Toshiba in the eye of a nuclear storm

Westinghouse, Toshiba’s American nuclear subsidiary, filed for bankruptcy on Wednesday, leaving the giant in great financial difficulties.

Following Fukushima accident, Westinghouse underestimated the rising of costs in the construction of power plants in the United States. Stricter safety standards had indeed been put in place after the disaster.

A judgment error that will have major consequences on Toshiba. To limit damages, the Japanese manufacturer has chosen to disengage from its subsidiary as of the current fiscal year.

Toshiba, who had invested more than four billion dollars ten years ago for the acquisition of the company, might suffer an annual net loss of 8.4 billion euros due to the financial burdens related to the bankruptcy.

Westinghouse should for its part receive the financial support of an anonymous third party. The latter will invest 800 million dollars in the company to help it during its restructuring stage.