Toshiba obtains new 2-year commitment line from banks worth US$3.3b

[TOKYO] Japan's Toshiba Corp has secured a fresh, two-year commitment line from its main banks worth 400 billion yen (S$4.7 billion), which nearly doubles the amount available, as it seeks a stable source of funds in the wake of a debilitating accounting scandal.

The laptops-to-nuclear power conglomerate said the new safety net would help prepare for any unexpected downturn in the market. The Tokyo Stock Exchange this month placed Toshiba on a watch-list, imposing a 91.2 million yen fine for the accounting debacle.

Toshiba said this year it overstated earnings by US$1.3 billion going back to fiscal 2008/09 - a scandal that prompted the chief executive and several other board members to resign.

Shareholders meeting at an extraordinary session on Wednesday are expected to approve a new management team featuring more outside directors than internal ones in a move aimed at improving corporate governance.

New Chief Executive Masashi Muromachi is also on a mission to overhaul weaker operations and return the company to profit. Toshiba said last week it would divest part of its Chinese white-goods manufacturing units, selling a small stake to Skyworth Digital Holdings.

REUTERS