Ailing Toshiba looks to book ¥500 billion April-December loss

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The company said Shigenori Shiga, Representative Executive Officer and Chairman of Toshiba, will step down on February 15 from his current position, but will remain in the board of directors to focus on solving issues related to the USA unit.

Toshiba will still consider participating in the Moorside project to build three new nuclear reactors near Sellafield in Cumbria, the Japanese technology giant has revealed.

The Yen 712.5 billion nuclear writedown is expected to reduce shareholder's equity in the company to a negative figure.

The reported atomic power loss is related to problems with the value placed on a deal involving the purchase of a nuclear firm by Toshiba subsidiary Westinghouse Electric.

The estimated target included eight reactors - four each in the United States and China - that the USA vendor already had under construction.

In a statement the company said: "Toshiba will consider participating in the project without taking on any risk from carrying out actual construction work". It had learned that controls at Westinghouse had been "insufficient" and that the company had used "inappropriate pressure" to make the acquisition.

This isn't the first time Toshiba hasn't released results on time.

Toshiba's woes continue to get worse. Toshiba explained it received internal information about inadequate governance during the acquisition process of a U.S. nuclear construction company.

Toshiba said it would meet its "social responsibilities" in Japan by assisting with the restart of idled nuclear power plants, maintenance operations and reactor decommissioning.

Toshiba said it based its latest cost calculations on the most pessimistic scenario, but executives also said they couldn't rule out further losses. "But as the Toshiba meltdown shows, eventually reality catches up with you".

According to Tokyo Stock Exchange rules, Toshiba had until noon today to deliver its quarterly financial results.

SCE&G is the primary subsidiary of SCANA Corporation, which announced that it will discuss the situation during its February 16 earnings call and "will take into account the relevant information disclosed by Toshiba" on February 14. It is unclear how this announcement will affect the sale of the minority stake in Toshiba's memory business. Toshiba's prior guidance for fiscal 2016 was net income of 145.0 billion yen.

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