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Toshiba keeps fighting, but its future looks grim

Embattled giant fails audit as it prepares to sell its memory chip division

Toshiba President Satoshi Tsunakawa at a press conference in Tokyo on April 11 (Photo by Nozomu Ogawa)

TOKYO Toshiba's problems just won't go away. The company failed to get its auditor's approval of a delayed earnings report. The sale of its prized memory chip business is faltering. And wary creditors are casting doubt over future funding. It's definitely not a pretty picture, and if the electronics giant can't turn things around quickly, its troubles could multiply.

APPROVAL DENIED Satoshi Tsunakawa, president of Toshiba, recently said that the company will do its best to stay listed on the Tokyo Stock Exchange. But this is obviously easier said than done, given their spat with auditor PricewaterhouseCoopers Aarata, which refused to approve the twice-delayed, nine-month earnings announcement. This alone does not warrant immediate delisting of Toshiba stock, but an unusual earnings release on April 11 means the company will be closely watched by the TSE.

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