Toshiba Is “Now Bust” Claims, As Executives Branded “Liars”
Toshiba management have been branded “liars” with one shareholder shouting “Shame on you!” as serious questions mount over the very future of the Japanese Company who are still selling medical equipment, digital signage and Toshiba Industrial equipment to Australian businesses as well as PC’s to small business customers.
At a meeting, last night in Tokyo, shareholders, some of them in tears, denounced management at the scandal ridden Company who due to poor management and corruption, were forced to lodge a chapter 11 bankruptcy filing in the US after one of their divisions suffered massive huge cost overruns on several U.S. projects.
Speaking to about 1,300 shareholders, Toshiba Chief Executive Satoshi Tsunakawa repeatedly offered apologies but didn’t provide clear-cut answers on why the company decided to expand its US nuclear-power business even after the 2011 meltdown at the Fukushima Daiichi plant in Japan.
According to the Wall Street Journal the special shareholder meeting was called to consider the spinoff of Toshiba’s largest remaining cash cow, its flash-memory semiconductor unit that makes chips for customers such as Apple.
Toshiba initially planned to sell just under 20% of the business, but has since said it would consider offers for the whole unit—estimated to be worth more than $10 billion—to cover its nuclear losses.
Shareholders ultimately approved the spinoff, but only after more than three hours of venting their concerns.
Shigenori Shiga, who resigned as Toshiba chairman in February, didn’t attend the meeting, citing health reasons.
‘Honourable Toshiba is now bust. How did this happen?’ one shareholder shouted.
Back at a shareholder meeting, in June 2016, executives said that the computer-memory business was helping Toshiba recover from a previous accounting scandal that saw Toshiba have to re issue their financials. Several senior executives were arrested following the scandal.
Now that memory unit is poised to be sold, similar the Toshiba medical-equipment business, another successful Toshiba business that the Japanese conglomerate had to sell in 2016 to cover losses from the accounting scandal.