Aug 02 (the-japan-news.com) - Toshiba Corp. shares were demoted to the Tokyo Stock Exchange's Second Section from the First Section on Tuesday amid the electronics and machinery maker's struggle to recover from financial troubles.
Toshiba plunged into a negative net worth, a situation in which debts exceed assets, at the end of March due to massive losses from its U.S. nuclear unit, Westinghouse Electric Co. Sharp Corp., another major Japanese electronics maker, was demoted to the exchange's Second Section last year.
Toshiba closed Tuesday at ¥265, up ¥19, or 7.72 percent, from the previous day. The rise reflected buybacks by individual investors after selling by institutional players ran its course, market sources said.
The company will be delisted from the TSE if it fails to resolve the negative net worth by the end of March next year. Challenges faced by the company include a dispute with its auditing firm.
Toshiba needs to keep its shares listed to secure support from banks because it has to raise funds for growth and pay up to ¥65.61 billion related to its debt guarantees to Westinghouse, which filed for bankruptcy protection in March.
Source: ANNnewsCH
