Toshiba shares rally on Prospect of New Loans

Toshiba shares rallied more than 10% on Thursday on reports the firm was about to secure substantial new loans for its restructuring efforts. 

 

The company is in talks with several Japanese lenders over money it needs to reorganise its business in the wake of a massive accounting scandal.

The embattled electronics giant is hoping for loans of up to 250bn yen ($2.2bn; £1.6bn), said Nikkei daily.

Toshiba Record $4.5bn loss since April.

The company, whose activities range from laptops to TVs to nuclear energy, is planning to cut 6,800 jobs.

Investors sold Toshiba shares on Monday, leaving them down 10%. 

Toshiba's president and vice-president resigned in July after the firm said it had overstated profits for six years.

Masashi Muromachi took over as chief executive and president from president Hisao Tanaka and vice-chairman Norio Sasaki also resigned in the wake of the scandal.