Westinghouse Electric Company filed for Chapter 11 bankruptcy protection Wednesday, saying it needed to restructure because of “certain financial and construction challenges” from its nuclear power plant projects.
The company has struggled with cost overruns and delays with the plants.
Parent company Toshiba warned in February it would need to take a $6 billion write-down on its estimated value of Westinghouse.
Toshiba said in a statement about the bankruptcy filing that it and the Westinghouse unit are working with the owners of two nuclear power plant sites on arrangements to continue construction of those projects.
Westinghouse lists eight of its AP1000 plants under construction in the U.S. and China. The company said Wednesday it has agreements with the owners at each site to continue working.
The bankruptcy filing does not affect Westinghouse’s operations in Asia, Europe, the Middle East and Africa, according to a company statement.
During the restructuring period, Westinghouse will rely on $800 million in financing it has secured to operate power plants, manufacture nuclear fuel and components, and carry out decommissioning and decontamination efforts.
“We are focused on developing a plan of reorganization to emerge from Chapter 11 as a stronger company while continuing to be a global nuclear technology leader,” said Westinghouse Interim President and CEO Jose Emeterio Gutierrez.
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