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Toshiba's Westinghouse set to file for Chapter 11

Staff Writer |
Toshiba's troubled U.S. nuclear unit Westinghouse intends to file for Chapter 11 protection from creditors, Japan's government said.

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The conglomerate is seeking to limit losses that have plunged it into crisis.

Yoshihide Suga, the government's chief spokesman, said he was aware that Pittsburgh-based Westinghouse plans a bankruptcy filing.

A bankruptcy filing would allow Westinghouse, whose nuclear plant projects have been dogged by delays and cost overruns, to renegotiate or break its construction contracts, although the utilities that own the projects would likely seek damages.

It would imperil the completion of Westinghouse's nuclear power plants under construction in the southern U.S., where ratepayers have already been covering some of the costs in their monthly electricity bills.

The future of Westinghouse has already been raised in bilateral talks between Japan and the US.

Japan fears that Westinghouse's collapse will incite criticism from U.S. President Donald Trump over the impact it could have on local jobs and finances.

The U.S. government has granted loan guarantees totaling $8.3 billion to the utilities commissioning the Georgia project.

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