Toshiba pays off Westinghouse debts

January 12, 2018

Tokyo- Toshiba Corp. said Friday it has completed the payments of Westinghouse Electric Co.'s debts it guaranteed for the failed US nuclear business subsidiary.

The major Japanese electronics and machinery maker said that it paid 1,860.5 million dollars to SCANA Corp., following its earlier payment of 247.5 million dollars, to fully settle its Westinghouse-related debt guarantee obligations to the U.S. energy company.

Last month, Toshiba settled similar guarantee obligations to Southern Co., also a U.S. energy company.

Westinghouse went bust in March 2017 by filing Chapter 11 bankruptcy protection. Major Canadian investment fund Brookfield Business Partners earlier this month announced a deal to acquire Westinghouse for about 4.6 billion dollars.

Westinghouse received orders from SCANA and Southern to build a total of four nuclear power reactors in the United States. Following its collapse, Toshiba was obliged to guarantee Westinghouse's debts owed to the two firms.

Toshiba's payments related to the failure of Westinghouse have reached 650.5 billion yen.

Toshiba will now try to sell its own claims on Westinghouse to reduce its tax burden. The Japanese company expects to eliminate its negative net worth by the end of March. Jiji Press