Toshiba quits on nuclear reactors in billion-dollar payout
Toshiba Corp will be paying $2.168 billion through 2022 over two unfinished nuclear reactors in South Carolina that its Westinghouse subsidiary is building, per Reuters. It will pay up regardless of whether they're built or not, per the AP.
Why it matters: Toshiba and Westinghouse are able to walk away from the nuclear construction biz and Toshiba gets to shed its liability for the contracts, both of which sent it on the path to file for bankruptcy this March. (Note: the Georgia project, Vogtle, and the South Carolina plant were the first new nuclear projects in the U.S. for nearly 30 years.)
Context: Toshiba made a similar deal in June for $3.7 billion with regards to utilities with Southern Co. Toshiba might also be weighing bids for its flash memory chip unit.