TOKYO – Japanese company Toshiba rose almost 5 percent on Wednesday at the Tokyo Stock Exchange after its main lenders promised to continue extending financial support to the company following a multi-million devaluation of its shares.
At the end of the morning session, the price of Toshiba shares had risen 4.99 percent to stand at 303 yen ($2.61).
The conglomerate, which is barely recovering from the accounting scandal uncovered in 2015, warned in late December of a possible multi-million dollar devaluation of its assets linked to the purchase of CB&I Stone and Webster the previous year.
Toshiba has been in a dispute with American conglomerate engineering, procurement and construction company, Chicago Bridge & Iron, which the Japanese company acquired in December 2015, over the valuation of the company’s assets and business.
The announcement led credit rating agencies S&P and Moody’s to downgrade Toshiba’s shares to junk.
On Tuesday, the Japanese company held a meeting with several banks to inform them of the situation and ask them to maintain their joint financing amid the possibility of problems with fundraising and bond redemptions, financial daily Nikkei reported Wednesday.
The banks agreed to continue their support to the conglomerate but added that additional capital financing will depend on the company’s ability to present a new, viable plan.