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Japan's government bails out Toshiba

by on31 December 2015

If your executives get done for fraud it is nice to have government help

The Japanese governmet has stepped in to help Toshiba rebuild its home electronics division and other operations by facilitating tie-ups with Sharp and others.

Toshiba was gutted by a corporate fraud scandle where managers were encouraged to boost sales to make the company look like it was doing better than it was.  Now, having to find more than a billion dollars to cover the faulty reporting and to restructure so that it is nto making a loss, Toshiba is looking to merge its white goods segment with its counterpart at Sharp or another Japanese home electronics manufacturer.

Support would come from the industry ministry and public-private investment fund, the Innovation Network  of Japan which is a government fund.  Money might also be used to help the outfit restructure its nuclear power business as the manufacturer hopes to find a partner for boiling-water reactors.

INCJ has also been looking to inject funds into Sharp and was pursuing a broader restructuring of the troubled firm including a possible merger with Toshiba's consumer electronics arm.

Last modified on 31 December 2015
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