Toshiba's woes underline need for reforms

Tokyo

THE image of corporate Japan, and of its problem-plagued electronics sector in particular, has taken another hard knock with the news that giant conglomerate Toshiba Corporation is facing serious financial difficulties and is in talks with its main creditor banks for support.

Toshiba has announced that it may book an asset impairment loss of up to several billion dollars on its US nuclear power business, which could force the company to seek a capital boost at a time when, analysts say, markets may not be receptive to such a move.