Toshiba agrees to sell Westinghouse Electric claims for $2.16 billion

By Caroline Salls

Pittsburgh, Jan. 18 – Toshiba Corp. has agreed to sell its claims against Westinghouse Electric Co. LLC and Westinghouse-related share purchaser Brookfield WEC Holdings LLC to the Baupost Group, LLC-controlled Nucleus Acquisition LLC, according to a Toshiba news release.

Specifically, Toshiba said it will sell its rights to assert claims against Westinghouse related to $5,788,000,000 in parent guarantee claims and $2,284,000,000 in other claims against Westinghouse to Nucleus for $2.16 billion.

Separately, Toshiba said it will sell all of the Westinghouse-related shares it owns in Toshiba Nuclear Energy Holdings (US) Inc. and Toshiba Nuclear Energy Holdings (UK) Ltd. to an affiliate of Brookfield Business Partners LP for $1.

In connection with the asset purchase agreement, Toshiba said it has entered into a plan support agreement with key stakeholders in Westinghouse’s Chapter 11 cases.

Under the plan support agreement, Toshiba’s equity interests will be subordinated to payment of all other Westinghouse claims, giving them no significant economic value.

Also under the plan support agreement, Toshiba said a reorganization plan will be filed “promptly” in Westinghouse’s Chapter 11 case. The plan is expected to be approved by the U.S. Bankruptcy Court for the Southern District of New York by the end of March, Toshiba said.

“These pathways will help contribute to the acceleration and early completion to the reorganization proceedings and provide for a fully consensual Chapter 11 plan of reorganization, thereby benefiting key Westinghouse stakeholders,” Toshiba said in the release.

Toshiba said it expects to close the sale of the guarantee claims by the end of January and to complete the sale of the Westinghouse-related shares in March.

Westinghouse, a Cranberry Township, Pa.-based nuclear products and services company and a subsidiary of Toshiba, filed bankruptcy on March 29, 2017. The Chapter 11 case number is 17-10751.

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