Home Business Toshiba Shares Jump 10% on New Loans Perspective

Toshiba Shares Jump 10% on New Loans Perspective

0

Toshiba shares jumped more than 10% on March 3 on reports the company was about to secure substantial new loans for its restructuring efforts.

The Japanese electronics giant is in talks with several local lenders over money it needs to reorganize its business in the wake of a massive accounting scandal.

Toshiba is hoping for loans of up to 250 billion yen ($2.2 billion), said Nikkei daily.


The company confirmed it was in talks but said the details had not been decided.

Sumitomo Mitsui Banking, Mizuho Bank and Sumitomo Mitsui Trust Bank were like to provide the funds as early as this month, Nikkei reports.

The funds are vital for Toshiba’s survival as it streamlines its bloated businesses, whose poor performances had gone unnoticed during almost a decade of false accounting.Toshiba restructuring 2016

The restructuring comes after Toshiba admitted in 2015 it had overstated its profits by $1.3 billion over seven years.

As part of the efforts to balance its books, Toshiba has announced major job cuts and the selling of several plants and units to external investors.

Toshiba currently employs almost 200,000 people.

Its shares have lost about 40% of their value since April 2015, when news of the profit overstatement began to emerge.

In July 2015, Toshiba’s chief executive, president and six other high-level executives resigned from the company.

Toshiba, which is involved in a wide-range of industries from electronics to nuclear energy, was founded in 1875 and launched the world’s first mass-market laptop in 1985.

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.