A major Toshiba lender said it will provide as much support as possible to the struggling firm
Sumitomo Mitsui Banking Corp (SMBC), a major lender to Toshiba, said it will provide as much support as possible to the embattled Japanese firm.
Toshiba unexpectedly delayed its financial update this week as it struggles to plug a multi-billion pound hole in its US nuclear business. The TVs-to-nuclear conglomerate now said it's considering selling most, if not all, of its prized flash-memory chips business.
Counting the sale of the memory chip business, Toshiba is expected to "effectively" hold on to positive net worth when it reports year-end earnings in March, said SMBC's chief executive Takeshi Kunibe today at a news conference of the Japanese Bankers Association, Reuters reported.
"Memory business is performing very well. It has a very good value. Toshiba is considering selling a certain proportion of the business and if it is taken in consideration, its equity capital is effectively in positive territory," Kunibe said.
However the sale could come after the period, meaning Toshiba would be left in negative net worth. That could send its shares to the second section of the Tokyo Stock Exchange, and sources told Reuters it would have to convince lenders to keep the funds coming.
Read more: Toshiba's shares have fallen 20 per cent