© Reuters. WESTINGHOUSE HAS AN AGREEMENT TO GET OUT OF BANKRUPTCY
by Tom Hals and Jessica DiNapoli
WILMINGTON/NEW YORK (Reuters) – Westinghouse Electric, a subsidiary of american nuclear Toshiba (T:6502) has entered into an agreement with its creditors that will allow him to get out of its situation of bankruptcy, according to three sources close to the matter.
This agreement sets out the modalities for the distribution of the money collected at the end of the planned sale of Westinghouse to Brookfield Business Partners, an affiliate of the canadian Broofield Asset Management.
Toshiba can expect to collect tax benefits from this agreement because it significantly increases the chances that the bankruptcy be resolved before the end of its fiscal year next march 31.
The conglomerate, japan will transfer its own receivables to a group of hedge funds led by the group Baupost, making this group the largest creditor of the folder, said the sources on Wednesday.
This solution is preferred to avoid disputes between creditors, has already seen this group of hedge funds to redeem for more than $ 2.2 billion of claims at Scana, a company of services to the communities of South Carolina who had ordered two nuclear reactors at Westinghouse.
This site, as well as another in Georgia, had suffered cost overruns of several billion dollars, causing the bankruptcy filing Westhinghouse in march and forcing Toshiba to sell his pole briefs for $ 18 billion in order to restore its finances.
The agreement has the concurrence of Brookfield, the official committee of unsecured creditors of Westinghouse and Toshiba, have even said the sources.
Westinghouse, Toshiba and a lawyer for the creditors ‘ committee refused to comment. Brookfield and Baupost have not responded to requests for comment in the immediate future.
(Wilfrid Exbrayat for French service, edited by)