Japanese multinational conglomerate Toshiba Corp, which is undergoing a $1.3 billion accounting scandal, is planning to ask for a new 300 billion yen ($2.49 billion) credit line by the end of January, 2016.
The money would be used to fund a large-scale restructuring of the company.
The company’s spokesman stated that Toshiba would approach its lenders for the new commitment line.
Earlier reports from Japan-based financial daily, The Nikkei informed that Toshiba would also seek help from Mizuho Bank and Sumitomo Mitsui Banking Corp.
In September, Toshiba secured a 400 billion yen commitment line. This has given the company a wider safety net, helping it to recover from the accounting scandal in which it overstated profits from around 2009.
Post the scandal was revealed, The Tokyo Stock Exchange has placed Toshiba stocks in a special "watch" category, to be able to see if it can improve internal controls.
Analytical firm Moody recently downgraded the company's debt rating to junk status. Both these moves are expected to toughen the funding process through debt or new shares.
Last week, the company has predicted a record 550 billion yen annual loss. The company was involved in an accounting scandal that has wiped about $8 billion in market value, has said there will be no public fundraising for two years.
BW Reporters
Haider Ali Khan is an alumnus of IIMC. He holds a degree in English Journalism from the prestigious campus. His passion includes Aviation, Technology, Politics and Sports.
