The initial intent of Toshiba's management meant that by 7 November, potential participants in a corporation's buyout from the market would have submitted their letters of assurance, but the failure of creditors to provide the necessary amount to the participants in the process could further delay preparations for the transaction.
The Bloomberg Agency reports that the assets of Toshiba, valued at $16 billion, are now being claimed by two consortia led by Japan Industrial Partners and Japan Investment Corp. respectively. Inflation and changes in US monetary policy have made borrowing a great deal of pleasure, and creditors are not ready to finance the purchase of shares of Toshiba by the mentioned investor consortia. Among Japanese lending institutions, only four organizations have shown their interest in financing the transaction, while creditors are not yet ready to provide full information on the structure of the forthcoming transaction, so they cannot claim the prompt disbursement of the necessary funds.
Such difficulties, according to informed sources, could encourage Toshiba to reject privatization in favour of selling only a portion of its assets. The Japanese corporation's management has already done much to prepare for privatization. In June, a new board of directors was approved, including hedge funds interested in restructuring Toshiba. In the summer, the company's capitalization was estimated at $22 billion, it has now fallen to $16 billion, and it is not certain that the Toshiba leadership will, under the prevailing circumstances, send a signal of intent to delay privatization in order to obtain a larger sum.