Japan‘s Toshiba is considering a $1.7bn writedown for its nuclear business creating speculation among investors that the value and goodwill for the unit was overstated.
The Asahi newspaper reported that the company’s Westinghouse unit is potentially set for a writedown given the company’s larger problems as chiefs look to draw a line in the sand following a $1.3bn accounting scandal in 2015.
The electronics conglomerate also confirmed a report that US authorities are probing accounting at its US units as a result of the book keeping scandal.
Westinghouse nuclear power subsidiary denied that its finances were under investigation.
While a stress test on its nuclear business last quarter had shown that there was no need for a writedown, Toshiba said its lower credit ratings and its weaker ability to procure funds had prompted a new test.
Nuclear power providers usually fund new plants through large-scale equity and bond issuance, making their creditworthiness extremely important.
“We cannot gain lost trust and corporate value in just a day. We don’t know how long it will take,” Chief Executive Masashi Muromachi told a news conference.
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