Toshiba chiefs are hoping that the filing for bankruptcy of its US unit, Westinghouse, can save the company’s existence.

The Japanese company believes the bankruptcy can help limit future losses for Toshiba, whose difficulties have seen the company’s shares fall 60 per cent since December.
Toshiba Westinghouse
BBC reports that some analysts are speculating over whether the Japanese conglomerate can even survive the crisis, as it will probably be forced to sell many of its premium segments, such as the lucrative memory chip unit.

So while a Westinghouse bankruptcy might stop things from getting even worse for Toshiba, it is still not clear whether the struggling giant will manage to find its feet in time.

However more analysis suggests that the Japanese government will not allow the company to go down.

Westinghouse has suffered huge cost overruns at two US projects and writedown of the business could see Toshiba’s total losses last year exceed $9.1bn, almost triple its previous estimate.

In the UK there are fears that the bankruptcy could impact on the NuGen joint venture, with Toshiba’s involvement in constructing nuclear power plants in Cumbria, and Britain’s overall ‘nuclear renaissance’.