The ongoing legal battle over the sale of Toshiba’s valuable chip unit could be resolved as soon as July 14. In response to Western Digital’s injunction request, Toshiba has filed an Opposition that will be heard by the Superior Court of California. If the Opposition is upheld then a deal for the company could finally be pushed through.
Toshiba had hoped to tie up a deal by the end of June, but an injunction request from company partner Western Digital prevented any sale from being finalised. It was reported in June that the company had given shareholders until the end of the month to decide on a potential buyer. But the last minute request from Western Digital scuppered that plan.
All of this comes in an effort to make up the $18 billion it needs pay off huge loans it has accrued. The nature of the sale has seen the Japanese government heavily involved, with emphasis being placed on keeping the firm within the country.
It had been previously thought that while INCJ is based in Tokyo, the consortium contained investments from US chipmaker Western Digital. However, that report was was debunked after it was reported that it was made up of KKR, SK Hynix, the Development Bank of Japan along with the aforementioned Bain Capital. It was also believed that Foxconn had put together an offer for the chipmaking business with Apple, Dell, Google, Microsoft and Cisco.
Toshiba’s financial woes are largely connected to its failed nuclear unit Westinghouse. Acquired in 2006, an ill-advised purchase in 2015 has led to massive scandal and loses for its parent company. Last month Westinghouse filed for a Chapter 11 bankruptcy and Toshiba is attempting to split from the company. Since revealing its financial turmoil a number of investors have shown an interest in Toshiba’s technology businesses.