Toshiba’s Westinghouse Electric Files for Bankruptcy Protection

[Keel]

First of all, what you said has simply show you have no knowledge on how Chapter 11 works.



Wrong, in Common Law, a bankruptcy is not to avoid "Complete Bankruptcy" (Actually, what does that mean by "Complete Bankruptcy" anyway?). Bankruptcy (Or insolvency), by law, with its definition, is to taken the problematic factor away from a trouble company, thus confer to the guardianship of a company by either force, via court order, or by voluntary insolvency. If the matter cannot be solve by taking away the problem, the company will be wind down and liquidated. You are mixing individual bankruptcy law to corporate insolvency law. In common law, the term bankruptcy DOES NOT APPLIES TO COMPANY OR CORPORATE ENTITIES, either you enter into administration, or you goes liquidate.

Receivership in common law also was used in probate court when an administrator of an asset was deemed unsuitable to be in charge of that asset, and thus appointing an administrator for it.

In Chapter 11, there were AT NO POINT WOULD ANY RECEIVER OR ADMINISTRATOR WOULD BE APPOINTED. You, as a director, DOES NOT LOSE CONTROL OF YOUR COMPANY, Administrator will only appointed if you declare a Chapter 7 Bankruptcy in the US. Filing Chapter 11 means you notice there are some unhealthy status with your company, it is a warning or precursor to the actual event of insolvency.

I don't ever think You get a warning before you file for insolvency in within Commonwealth country. IN country like UK and Australia where common law works, once you cannot repay your debt (either physical debt or cash flow balance), you will be either enter into voluntary administration or liquidate by court. There are no warning or anything you can do to shield the investor and creditor while you kept running your business.

Hence there are no similar factor between an insolvency declared under common law, and filing a chapter 11 in the US. That would make Chapter 11 unique outside any common law.

But then, this is not what I said in my original post...

In my original post, when I was replying to a member post which said "Elon Musk" will be in deep trouble if Tesla apply for Chapter 11 (Something regarding the stock market). My replied is that in the US, even a CEO file Chapter 11 is not the end of the road for him, he STILL HAS CONTROL over the company, however, in common law, YOU, THE DIRECTOR is done, once a company enter insolvency.

Dancing around Chapter 11 and receivership does not help but rather the more you dig into this topic, the more you show your lack of knowledge on US and Common Law Bankruptcy Law.

Did I brag? I don't think so, just that because you don't understand what I said, does not mean I am bragging, it just mean you have no knowledge on that subject matter to understand.

If I were you, get a taxation textbook and a dictionary, try to read it before you come out here and say stuff like "Complete Bankruptcy" that does not make any sense.

Talking to you is a total waste of time
Cant draw blood out of a stone

That's it

 

[Shotgunner51]

Westinghouse chairman replaced by Toshiba executive
Apr 4, 2017, 8:15am EDT Updated Apr 4, 2017, 1:15pm EDT

Toshiba has replaced the chairman of Westinghouse Electric Co., a spokeswoman confirmed Tuesday.

Former Westinghouse chairman Danny Roderick was replaced last week by Mamoru Hatazawa, head of Toshiba's nuclear division, according to Westinghouse spokeswoman Courtney Boone. Hatazawa is serving as chairman of Cranberry-based Westinghouse while remaining in Japan, Boone said. Roderick is still seconded to Toshiba though Westinghouse did not specify in what capacity he is working.

Roderick's replacement came two days before Westinghouse filed for Chapter 11 bankruptcy last Wednesday, in response to Toshiba's estimated $9 billion loss stemming from Westinghouse's four U.S. nuclear reactor projects.

http://www.bizjournals.com/pittsburgh/news/2017/04/04/westinghouse-chairman-replaced-by-toshiba.html

 

[TaiShang]

Westinghouse chairman replaced by Toshiba executive
Apr 4, 2017, 8:15am EDT Updated Apr 4, 2017, 1:15pm EDT

Toshiba has replaced the chairman of Westinghouse Electric Co., a spokeswoman confirmed Tuesday.

Former Westinghouse chairman Danny Roderick was replaced last week by Mamoru Hatazawa, head of Toshiba's nuclear division, according to Westinghouse spokeswoman Courtney Boone. Hatazawa is serving as chairman of Cranberry-based Westinghouse while remaining in Japan, Boone said. Roderick is still seconded to Toshiba though Westinghouse did not specify in what capacity he is working.

Roderick's replacement came two days before Westinghouse filed for Chapter 11 bankruptcy last Wednesday, in response to Toshiba's estimated $9 billion loss stemming from Westinghouse's four U.S. nuclear reactor projects.

http://www.bizjournals.com/pittsburgh/news/2017/04/04/westinghouse-chairman-replaced-by-toshiba.html

Toshiba should let Westinghouse sink; otherwise, it will pull Toshiba down together.

I read somewhere that Toshiba also wants to sell out its European TV arm and Hisense is among those interested.

 

[Shotgunner51]

Toshiba should let Westinghouse sink; otherwise, it will pull Toshiba down together.

I read somewhere that Toshiba also wants to sell out its European TV arm and Hisense is among those interested.

It makes sense that Toshiba will cut loss and throw away this baggage, it already a liability, negative assets. Still Toshiba does need to sell some assets to cover the losses, say NAND (potentially to Foxconn, Broadcom and others, I posted latest deal development in other thread, see below 332), and their TV Arm in Europe as you said. Hisense interested? Good to know, in fact there is opportunity for Toshiba to seek deals in one stop shop - China - where they may find CGN for Westinghouse, Tsinghua Uni for NAND, and like Hisense for European TV division. Well US politicians would do whatever it takes to interfere, so that wouldn't happen, they can even sabotage asset deal in Europe.

https://defence.pk/pdf/threads/china-chipping-away-to-semiconductor-dominance.412585/page-23

 

[TaiShang]

Well US politicians would do whatever it takes to interfere, so that wouldn't happen, they can even sabotage asset deal in Europe.

Could Toshiba threaten them to let them die if the US government interferes in a potential deal with a China company?

 

[Shotgunner51]

Could Toshiba threaten them to let them die if the US government interferes in a potential deal with a China company?

It's not letting it die, it's already a dead investment with outstanding liabilities to cover. No it won't happen, multinationals like Toshiba is a publicly listed company, they have to observe laws and abide to regulatory policies, and CFIUS does have jurisdiction on foreign activities in US. If there's any deal between Toshiba and say CGN, it needs approval from all three governments of China, Japan and US.

 

[Keel]

Toshiba Corp.'s Regza TVs are displayed at CEATEC 2013, Japan's biggest annual electronics trade show, at Chiba's Makuhari Messe. | KAZUAKI NAGATA
BUSINESS / CORPORATE
Toshiba mulls selling unprofitable domestic TV business
KYODO, STAFF REPORT
2017/04/10
http://www.japantimes.co.jp/news/20...profitable-domestic-tv-business/#.WOzLpuyeo8I

Toshiba Corp. is considering selling its unprofitable domestic television business in an effort to boost its financial standing, sources close to the matter said Monday.

The struggling electronics company, which is reeling from huge losses at its U.S. nuclear power business, is looking to sell the TV operation to companies in Turkey and China, the sources said.

The sale of the domestic business will mark Toshiba’s total withdrawal from TV manufacturing after the embattled company previously pulled out of production overseas.

Toshiba currently produces about 600,000 units of its Regza brand TV annually for the domestic market at its plant in Aomori Prefecture.

The company aims to advance talks with potential buyers on the condition that operations at the plant and employment are maintained. It may offer buyers the option of operating the TV division using the Toshiba brand.

Toshiba posted a group net loss of ¥10.5 billion on sales of ¥27.9 billion in the TV business in the first half ended September 2016. In November, the company said that it would overhaul the TV business as part of a broad restructuring plan.

Toshiba has been forced to sell a number of its businesses, both profitable and unprofitable, following an accounting scandal in 2015 and now issues with its U.S. nuclear unit Westinghouse Electric Co.

The company sold its white goods and medical units last year and is now putting its flash memory business — a key money-maker — on the table to cover massive losses at Westinghouse., which filed for Chapter 11 bankruptcy protection in the U.S. last month.

The TV business was at the center of the accounting scandal in 2015 that led the company to sell its TV plant in Indonesia and pull out of overseas TV production. Local firms in some countries are, however, still selling TVs under the Toshiba brand under a licensing deal.

The cash-strapped company said last month it could post a group net loss of ¥1.01 trillion for the fiscal year that ended March 31, the largest ever for a Japanese manufacturer, and also expects to fall into a negative net worth of ¥620 billion.

The deadline for Toshiba to announce its April-September business results is Tuesday, but it is still unclear whether the company will be able to keep to the deadline as it is still negotiating with its auditor.

Toshiba already postponed the announcement twice and a third delay would make it the first listed firm in Japan to do so.

 

[50cent]

Earliern they stop production of tablets

 

[Hamartia Antidote]

http://fortune.com/2017/04/14/apple-foxconn-toshiba-semiconductor-business/
Apple Is Reportedly Planning to Bid for Toshiba’s Semiconductor Business

Apple is s considering teaming up with its supplier Foxconn to bid for Toshiba's semiconductor business, public broadcaster NHK said on Friday—the latest twist in the sale of the world's second-biggest flash memory chipmaker.

The U.S. technology giant is considering investing at least several billion dollars to take a stake of more than 20% in a plan that would have Toshiba (TOSBF, -4.77%) maintain a partial holding to keep the business under U.S. and Japanese control, NHK reported, citing unidentified sources.

The proposal is aimed at allaying the Japanese government's concerns over any transfer of sensitive technology to investors it deems a risk to national security, it said.

Foxconn (FXCNY, -0.42%), which participated in the first round of the auction, has been considered such a risk due to its deep ties with China. The bulk of Apple's iPhones are manufactured at Foxconn's extensive manufacturing base there.

NHK said Apple (AAPL, -0.53%) wants the Taiwan firm to own a stake of around 30% of Toshiba's chip business.

Apple was not immediately available to comment. Foxconn, formally known as Hon Hai Precision Industry (HNHPF, -0.78%), declined to comment.

An investment by Apple would be its first direct stake in a major global memory chipmaker as it seeks to secure a stable supply of key components. Samsung (SSNLF, 0.00%) is the biggest maker of flash memory chips, followed by Toshiba, SK Hynix, and U.S.-based Micron Technology (MU, +0.34%).

The report comes as Western Digital Corp (WDC, -0.84%), Toshiba's partner and one of the bidders of its chip business, warned this week that the Japanese firm is violating a joint venture contract in plans to sell to its chip unit, and urged that it be given exclusive negotiating rights.

The auction of the prized asset is essential to Toshiba's plans to cover multi-billion writedowns at U.S. nuclear unit Westinghouse that have plunged it into crisis.

Toshiba has narrowed down the field of bidders for its chip unit to four suitors, sources have also said.

They are U.S. chipmaker Broadcom (BRCM), which has partnered with private equity firm Silver Lake Partners; South Korea's SK Hynix; Foxconn, the world's largest contract electronics maker, and Western Digital.

Broadcom has put in the highest first-round offer of 2.5 trillion yen ($23 billion), while Foxconn offered 2 trillion yen, a person briefed on the matter told Reuters this week.

Apple was not part of any of those four bids, according to the person. It is unclear whether it participated in the first round of the auction that sources have said drew around 10 offers.

Shares in Toshiba fell 5% on Friday, hit by a Bloomberg report that the chip business sale had been temporarily put on hold to address the concerns raised by Western Digital, which Toshiba denied.

"It is not true Toshiba has put the chip sale process on hold," a Toshiba spokesman said.