Toshiba is seeking an estimated 200 billion yen to 250 billion yen ($1.75 billion to $2.19 billion) in additional loans from three key lenders to cover the costs of streamlining its home electronics and semiconductor businesses.

Sumitomo Mitsui Banking Corp., Mizuho Bank and Sumitomo Mitsui Trust Bank likely will heed the request and provide the funds as early as this month. The Japanese conglomerate is working to overhaul operations by the end of the current fiscal year March 31, aiming for a recovery in profitability next fiscal year.

The company expects to book a net loss of 710 billion yen for fiscal 2015. Toshiba will cut staff and take other steps in home electronics, which includes personal computers and televisions. The company's restructuring costs are seen totaling 248 billion yen.

Toshiba secured a credit line of 400 billion yen from key lenders in late September, but this was mainly to be used when the company has fundraising problems. Toshiba's interest-bearing debt totals around 1.6 trillion yen. To improve the declining capital ratio, the company is selling unit Toshiba Medical Systems, with plans to use part of the proceeds to repay the new loans.

Toshiba met Wednesday with more than 40 banks with which it does business. The company asked, among other things, to renew contracts on credit lines to expire in March, sources from the banks said.

By: DocMemory
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