A successful climax to 2017 has granted the OEM a further three months of credit from the banks.
Toshiba’s creditors have extended their loan agreement with the Japanese OEM until March 2018, following its recent good news reducing the risk of default, reports Nikkei Asian Review.
Originally, the OEM’s agreement with seven different banks was due to expire at the end of 2017. However, with the hatchet now buried in a long-running dispute with Western Digital, and with ¥600 billion ($5.3 billion/€4.4 billion) raised in additional capital, the agreement has been extended.
The agreement was first extended to the end of December in late September, when the OEM found a buyer for its memory chip unit, Toshiba Memory, although the three-month extension was a significant reduction from the original two-year term.
Toshiba hoped that the new extension would be longer than the previous three-month one, but the banks collectively agreed on the same timeframe again, by the end of which, the sale of Toshiba Memory is expected to be completed.
The sale is forecast to bring the OEM an additional ¥2 trillion ($17.8 billion/€14.7 billion), pending approval from antitrust regulators in China and beyond.
