05.05.2017_No89 / News in Brief

Westinghouse To Complete Restructuring Plan By End Of June

Corporate

5 May (NucNet): Westinghouse plans to complete a restructuring plan by the end of June 2017 and a new business plan by the end of July 2017, the company’s interim president and CEO José Emeterio Gutiérrez told Interfax-Ukraine. He said the business plan, covering the next five years, will include implementation of the restructuring plan. Mr Gutiérrez confirmed Westinghouse had received external financing of $800m (€730m) to protect the company's core business during its reorganisation. He told Interfax-Ukraine that “we are 100% sure that this will be sufficient to support the company throughout the bankruptcy proceedings”. He said: “An important detail is that all the other company divisions are in good shape, continue to generate income and cash flow. That’s why we are convinced that the finances and the profit generated by the other companies, plus the $800m, will be enough while the bankruptcy claim is being reviewed.” Westinghouse, the US-based nuclear unit of Japan’s Toshiba, filed for bankruptcy protection in the US in March 2017. Asked what had triggered the need to start bankruptcy proceedings Mr Gutiérrez said the problem was cost overruns for reactor construction in the US. “By late 2016 we realised that the additional cost of completing the construction would be around $6.1bn. This means that the results of the fiscal year, which ended on 31 March, will show significant losses.”

Related reports in the NucNet database (available to subscribers):

  • Westinghouse Remains Committed To AP1000 Reactor Technology And New Projects (News in Brief No.88, 04 May 2017)

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NucNet

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David Dalton

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