The Japanese Group Toshiba Corp. Board has announced it has approved a bankruptcy protection file submission for its nuclear reactor manufacturer and constructor Westinghouse within the frame of the Chapter 11 of the U.S. bankruptcy code.
This move has been initiated because Toshiba is reeling from major losses linked to Westinghouse's performances and is trying to protect the assets from creditors. Westinghouse's nuclear plant projects have been deemed by delays and cost overruns and its liabilities amounted US$9.8bn as of December 2016. With a bankruptcy filing, Westinghouse will be in measure to break or renegotiate its construction contracts.
Previously in March 2017, Toshiba has announced that it is considering the sale of a majority stake in Westinghouse to remove it from the Group's books and limit further losses.
Westinghouse is in charge of all AP1000 nuclear projects worldwide, including four in the United States (two units at VC Summer in South Carolina and two at Vogtle, in Georgia), and four in China (two at Sanmen and two at Haiyang).
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