Toshiba's survival in doubt amid Westinghouse troubles

The logo of Toshiba Corp is seen behind cherry blossoms at the company's headquarters in Tokyo

"T$3 here are material events and conditions that raise substantial doubt about the company's ability to continue as a going concern", Toshiba said.

Toshiba shares have been hammered this year, losing more than half their value since late December when it first warned of multi-billion-dollar losses at Westinghouse.

Toshiba's auditor said Tuesday it would not sign off on the latest results until it had finished "evaluating" the firm's probe, among other issues.

At a press conference in Tokyo, Toshiba President Tsunakawa Satoshi stated, "We can't cause any more anxiety and inconvenience to our shareholders", explaining the firm's decision to release its report without the auditor's approval.

PWC Aarata's refusal to approve Toshiba's accounts raises the possibility the group could be delisted from the Tokyo Stock Exchange.

The vast conglomerate - which has about 188,000 employees globally and annual revenue topping 5.6 trillion yen - once touted its overseas nuclear business as a future growth driver, filling a hole left after the 2011 Fukushima crisis slammed the brakes on new atomic projects in Japan.

Sources stated that the Tokyo Stock Exchange is set to examine whether Toshiba's report meets the criteria for delisting.

It was announced last week that Toshiba is to take over the company planning to build a new nuclear power station in the UK.

Westinghouse has filed for Chapter 11 bankruptcy in the United States, a process that acts to protect the business from creditors while it restructures.

The objection is likely to complicate the sale of the prized unit - the world's second-biggest producer of NAND chips which Toshiba has valued at around $18 billion.

After Toshiba submitted a document on the status of improvements in its management system on March 15 this year, the TSE began examining whether to remove the alert designation or delist the company's shares.

The world's largest contract electronics manufacturer is apparently willing to bid high as it now does not own any large memory manufacturer, and Toshiba's chip business would support Foxconn as it develops memory as a "cash-cow" for use in a variety of networking equipment, such as Apple products.

According to local media, Toshiba is close to selling its memory-chip business to Taiwan's Foxconn for $27 billion.

It has told Toshiba it has breached its jv obligations with WD to put the business up for sale. Tsunakawa has said he expects the unit to fetch at least 2 trillion yen ($18 billion).

The group said, in the statement, that although it recorded higher sales, especially within its memories and hard disk drives (HDDs) segment, the appreciation in yen and the shrinking scale of the PC and TV businesses, as a result of restructuring, resulted in the impact.



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