Japanese conglomerate Toshiba is going to sell a loss-making subsidiary company Westinghouse Electric, which works in the nuclear power industry in the United States and goes through bankruptcy proceedings.

During the Nuclear Energy Assembly, organized by the Nuclear Energy Institute (NEI), Westinghouse's operating director Mark Marano said that in the autumn of 2017, Toshiba could begin the process of selling a controlling stake in an American company.

At the end of 2016, Toshiba warned of the write-off of several billion dollars to Westinghouse due to overexpenditures in some nuclear projects in the US, which resulted from the purchase of CB & I Stone & Webster (specializing in nuclear construction and integrated services). As a result, Toshiba suffered a record loss for the fiscal year (ending March 31, 2017) - 950 billion yen (8.4 billion dollars) against 460 billion yen (4.1 billion dollars) of cash losses a year earlier.

At the end of March 2017, the Westinghouse bankruptcy procedure was launched, after which the Toshiba management repeatedly stated that the American company would not be able to continue its work due to huge losses.

Major write-offs at Westinghouse led to the fact that Toshiba's net worth, which, after an accounting scandal, had shrunk to only $ 3 billion, had become negative by the end of last year. This threatens the company's departure from the Tokyo Stock Exchange and financial problems. Toshiba President Satoshi Tsunakawa (Satoshi Tsunakawa) said that the company will do everything possible to avoid excluding shares from stock trading.

According to Toshiba, by the end of March 2017 the company's own capital remained deeply negative - at 540 billion yen (4.8 billion dollars).

Satoshi Tsunakawa admits the sale of Westinghouse.

Analysts, which refers to the agency Bloomberg, believe that the interest in buying Westinghouse can show Chinese and South Korean companies developing nuclear reactors for exports.

According to Marco Marano, Toshiba "quite clearly made it clear to the market" that he wants to sell a controlling stake in Westinghouse. Earlier, Apollo Global Management issued a $ 800 million loan to Westinghouse to finance operations in the process of reorganization. In July, Westinghouse will have to submit a business plan to the bankruptcy court.