June 10, 2017
Tokyo- Toshiba Corp. said Saturday it has agreed with US utility Southern Co. to pay up to $3.68 billion in guarantee over the unfinished construction of two reactors by the Japanese company's failed nuclear unit.
Under the agreement, Toshiba is due to make the payments in installments between October this year and January 2021.
Toshiba still has to conclude talks with another US power firm on parent company liabilities over nuclear plant construction projects undertaken by Westinghouse Electric Co., which filed for Chapter 11 bankruptcy protection in March.
The agreed guarantee amount will not affect the struggling Japanese electronics and plant giant's earnings projections because the company has already set aside loss reserves, Toshiba said.
Toshiba's guarantee payment will cover the construction of two reactors at the Vogtle plant in Georgia. It had already agreed with Vogtle owners led by Southern to guarantee financing to Westinghouse but had yet to fix the payment amount.
Toshiba has provided similar guarantees for the construction of two reactors by Westinghouse at Scana Corp.'s V.C. Summer nuclear plant in South Carolina.
Depending on the outcome of the negotiations with Scana, Toshiba's total loss from the construction of the four reactors in the United States would exceed its estimate of 980 billion yen, pundits said. (Jiji Press)
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