This article first appeared in The Edge Financial Daily, on March 4, 2016.

TOKYO: Toshiba Corp is asking three Japanese lenders for additional loans of about US$1.8 billion (RM7.4 billion) to fund restructuring in the wake of an accounting scandal, sources with direct knowledge of the matter said yesterday.

Toshiba is seeking about ¥200 billion (RM7.4 billion) from Sumitomo Mitsui Banking Corp, Mizuho Bank and Sumitomo Mitsui Trust Bank, said the sources, who were not authorised to discuss the matter publicly.

The lenders are willing to extend loans, though the amount is subject to negotiations, the sources said.

The funds are vital for the survival of the Japanese toaster-to-nuclear reactor conglomerate as it streamlines its bloated businesses, whose poor performaces have been masked by years of false accounting.

A Toshiba official confirmed the company had been in talks with its main creditors for additional loans, but said the amount and conditions had not been decided.

The company, which has seen its credit rating cut to junk by Moody’s Investors Service, secured a credit line of ¥400 billion from lenders in September.

In the wake of a book-keeping scandal in which Toshiba overstated profits from around 2009, chief executive Masashi Muromachi has pledged to accelerate restructuring.

It has already announced more than 10,000 job cuts, as well as plans to overhaul its chip business and sell its loss-making laptops and home appliances businesses.

To raise more cash, Toshiba plans to sell its entire medical equipment unit rather than only a partial stake in Toshiba Medical Systems Corp, people familiar with the matter told Reuters this week. — Reuters