Toshiba drops again amid reports it may need further aid

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Toshiba shares have lost about a tenth of their value today amid reports the troubled conglomerate may require further financial aid.

Shares were down 9.3 per cent, but fell as much as 10.3 per cent, bringing decline so far this week to 15 per cent.

The company is said to hold a meeting of its lenders, which include Sumitomo Mitsui Banking, Mizuho and Sumitomo Mitsui Trust, and ask for additional financial support to cover a temporary rise in losses in the wake of its US nuclear division filing for Chapter 11 bankruptcy last week, NHK reported, citing an unidentified person.

Assistance might take the form of increasing the company’s credit line.

Yesterday, shares ended 5.5 per cent lower on reports the company would likely miss another deadline for its quarterly earnings.

Last Wednesday, Toshiba puts its Westinghouse nuclear subsidiary, which had suffered from large cost overruns, into bankruptcy protection, a move that could lead to Japan’s biggest industrial loss. Shares rose for three straight days following that news as traders covered short positions and investors hoped the company could secure a good price for its prized Nand flash memory unit.

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