* Toshiba in talks with regulator for extension -source
* Extension would be its second after postponement a month
* Toshiba has been probing potential problems at
(Writes through with details)
By Taro Fuse
TOKYO, March 13 Japan's Toshiba Corp is
seeking to extend its Tuesday deadline for submitting official
third-quarter earnings due to disagreements with auditors over
issues at its U.S. nuclear unit Westinghouse, sources familiar
with the matter said.
The extension would be its second for the earnings after
Toshiba postponed a month ago to probe potential problems at
Westinghouse. It has flagged a $6.3 billion writedown for the
nuclear unit in preliminary estimates.
A second extension would only underscore deepening woes for
the deeply troubled TVs-to-construction conglomerate.
Plagued by cost overruns at U.S. projects in Georgia and
South Carolina, Westinghouse has hired bankruptcy lawyers as an
exploratory move, sources have said - an option that could help
Toshiba limit future losses.
To offset the upcoming writedown, Toshiba is also rushing to
sell most or even all its prized memory chip business, which it
values at at least $13 billion.
Toshiba is in talks with financial regulators for an
extension, one of the sources told Reuters on Monday. The
sources declined to be identified as they are not authorised to
speak to media.
Toshiba declined to comment. Officials at the arm of the
Finance Ministry which oversees the filing of quarterly earnings
statements could not be immediately reached for comment.
It was not immediately clear what the disagreements with
auditors were. A Toshiba executive said last week that
Westinghouse and lawyers were fussing over details.
If it fails to gain approval for an extension, it has to
submit earnings by March 27 or it could face a delisting.
A second extension would have precedent. In 2015, Toshiba
also delayed the release of its results twice due to an
independent investigation over years of profit-padding.
Toshiba is also due to submit this week a report to the
Tokyo Stock Exchange on its internal controls in the wake of its
latest financial woes as well the 2015 accounting scandal. That
could eventually also lead to a delisting if the bourse finds
Toshiba's efforts unsatisfactory.
(Reporting by Taro Fuse; Additional reporting by Taiga Uranaka;
Writing by Makiko Yamazaki; Editing by Edwina Gibbs)