Wednesday’s share slide left Toshiba with a market value of 889 billion yen ($7.8 billion), less than half its value in mid-December. Just under a decade ago, the firm was worth almost 5 trillion yen.
At a meeting with its creditors on Wednesday, Toshiba executives asked for an extension of a waiver for a loan covenant violation until the end of March, financial sources said, declining to be identified as they were not authorized to speak to the media on the matter.
Cuts to credit ratings after Toshiba warned in December of a large writedown put it in violation of one loan covenant, which could prompt lenders to call in loans early.
Toshiba’s loans from banks and insurers stood at about 800 billion yen ($7 billion) as of end-September, a financial source has said. Sumitomo Mitsui Banking and Mizuho Bank are its biggest creditors.
While the two lenders and the state-backed Development Bank of Japan Inc have so far expressed support for Toshiba, other creditors will need more convincing before they back Toshiba further, sources familiar with the matter have said.
Potential investors in Toshiba may also need to heed Japanese government concern about the future of a company its sees as strategically important.
($1 = 114.6000 yen)
