Japanese Toshiba has announced its intention to request a new credit line of 300 billion yen ($ 2.49 billion) by the end of January for the financing of a large scale restructuring after a major accounting scandal, the company spokesman said on Tuesday.
Earlier, the daily financial edition of Nikkei reported that Toshiba may request the assistance to banks, including to Mizuho Bank and Sumitomo Mitsui Banking Corp.
In September, Toshiba received a credit line of 400 billion yen, and the new loan could add the company's confidence, which is trying to recover from a scandal involving violations of accounting rules. With the new line of credit debt, Toshiba exceed 1 trillion yen, the company said. Earlier this month, the company announced that it will fix a record loss in the current financial year because of the recent scandal with reporting; it will also cut jobs and restructure some operations.
According to the forecast of the company, its net loss for the financial year ending 31 March 2016, will reach a record 550 billion yen ($ 4.5 billion).
Moody's rating agency lowered the debt rating of Japanese company to Ba2, and the Tokyo Stock Exchange has placed shares of Toshiba in the special monitoring category, to see whether the company will be able to improve the system of internal control. Both steps have led to the situation in which Toshiba has become more difficult to raise capital at the expense of borrowing or issuing new shares. Another rating agency - Standard & Poor's, downgraded by one level the long-term credit rating of Toshiba Corp: from BBB- to BB +.
Japanese manufacturer of technologies announced last week that it would cut staff in the division of consumer electronics by 6800 jobs (production of television sets, personal computers and home appliances), is said in a press release; as a result, the total number of cuts in the company could exceed 10000 jobs, which is a decline of about 30% of the global state of Toshiba. Toshiba plans to focus on the production of microchips and equipment for nuclear power.