Westinghouse Files

Emblematic electric company enters Chapter 11 bankruptcy

The words ‘electric’ and ‘pioneering’ are synonymous with Westinghouse. The company, started by George of the same surname in 1886, was at the forefront of the implementation of electricity as an industry and household regularity. More recently, it had operated as Toshiba’s nuclear branch; the company’s vaunted pressurized water reactor—the AP1000—was designed to streamline nuclear plants and promote their economic viability. Unfortunately, Westinghouse’s future is now unclear, with the company filing for Chapter 11 bankruptcy in New York Wednesday.

Westinghouse is now facing the prospect of scaling back on construction, where unsuccessful projects in Georgia and South Carolina have exposed Westinghouse to billions of dollars in possible liabilities and penalties, according to a report by Bloomberg. Litigation processes from delays and cost overruns associated with these projects have exacerbated its financial conundrum over the past decade. Parent company Toshiba, likewise, has major financial problems which partially stem from the nuclear downturn. Toshiba bought Westinghouse in 2006. The Japanese-based electric manufacturer says Westinghouse liabilities were $9.8 billion as of December 2016.

Westinghouse secures $800 million in debtor-in-possession financing with the Chapter 11 filing.

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Trackbacks/Pingbacks

  1. Toshiba Realignment | Electrical Apparatus Magazine - April 27, 2017

    […] the company announced Monday. The decision follows Toshiba’s nuclear division—Westinghouse—filing for bankruptcy March […]

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