Scandal-hit Toshiba to seek billions in new credit

Japanese conglomerate Toshiba is planning to seek billions of dollars in new credit to finance its burgeoning restructuring costs. It comes after the company's recent announcement to slash thousands of jobs.

Toshiba is seeking an additional 300 billion yen ($2.5 billion) in credit to pay the firm's ballooning restructuring costs, a news report said Tuesday.

The 140-year-old Japanese company is likely to approach financial institutions including Mizuho

Bank and Sumitomo Mitsui Banking, the Nikkei business daily reported, citing Chief Financial Officer Masayoshi Hirata.

The company is also in talks to sell its equipment maker Toshiba Medical Systems, which would likely boost its capital base to more than 1 trillion yen by the middle of the next financial year, according to the report.

Toshiba had secured 400 billion yen in credit lines in September, but it later found that restructuring costs have climbed to around 260 billion yen in the year through March, the report said.

Top Toshiba executives bow out in shame.................

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