Japan's Toshiba secures $8.3b in credit lines, says report

A shareholder of Toshiba arriving at a shareholders' meeting in Chiba, Chiba prefecture, on June 28, 2017.
A shareholder of Toshiba arriving at a shareholders' meeting in Chiba, Chiba prefecture, on June 28, 2017.PHOTO: AFP

TOKYO (REUTERS) - Embattled Japanese conglomerate Toshiba Corp used shares in its divested flash memory unit to secure a credit of 680 billion yen (S$8.31 billion) from major banks, Nikkei news agency reported on Friday (July 7).

Lenders helped Toshiba by providing a way for the company to borrow funds by leaving share certificates with the banks, instead of pledging actual shares as collateral, Nikkei said.

The banks had confirmed that the workaround would not pose any legal problems, giving the arrangement added legitimacy, the report added.