Toshiba called "laughing stock" over crisis

PanARMENIAN.Net - Toshiba's management has come under fierce criticism from shareholders, despite investors approving plans to sell its valuable memory chip unit, BBC News reports.

The company needs money to plug a gaping hole at its US nuclear unit Westinghouse, which filed for bankruptcy protection on Wednesday, March 29.

Due to the woes at Westinghouse, Toshiba is struggling with debt that some warn might threaten its future.

One investor said management had turned Toshiba "into a laughing stock".

"You have no clue what's going on," the investor added, speaking at a shareholder meeting that approved the sale of Toshiba's NAND flash-memory unit.

The company has twice postponed its annual earnings and is now expected to file a net loss of 1tn yen ($9bn), which would be one of the biggest losses in the country's corporate history.

The Japanese conglomerate estimates its memory business to be worth $18bn and plans to sell parts or all of it.

According to media reports, the potential buyers for the memory chip unit include US firms Western Digital and Micron Technology as well as South Korea's SK Hynix.