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Toshiba offers new collateral amid criticism from creditors

Jiji Press TOKYO (Jiji Press) — Toshiba Corp. has won an agreement from major creditor banks to extend their financing to the struggling electronics and machinery giant to the end of April, informed sources said Wednesday.

At a meeting with its creditor banks on the day, Toshiba explained the circumstances of the second postponement, announced the previous day, of its release of April-December 2016 business results, as well as prospects for its troubled U.S. nuclear plant business.

The company’s three main creditors — Sumitomo Mitsui Banking Corp., Mizuho Bank and Sumitomo Mitsui Trust Bank — expressed readiness to accept Toshiba’s request for the extension. The other creditors will give their responses by March 30.

The three banks also agreed to accept Toshiba’s holdings of listed company shares and real estate plots as collateral to help cover its declining creditworthiness.

Some participants in the meeting, meanwhile, criticized Toshiba for putting off the earnings announcement again and questioned its internal control system.

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