Toshiba Corp.’s U.S. nuclear unit Westinghouse filed for chapter 11 protection from creditors today, just three months after huge cost overruns were flagged, as the Japanese parent seeks to limit losses that threaten its future, Reuters reported. Bankruptcy will allow Pittsburgh-based Westinghouse, once central to Toshiba's diversification push, to renegotiate or even break its construction contracts, though the utilities that own the projects could seek damages. It could even pave the way for a sale of all or part of the business. For Toshiba, the aim is to fence off soaring liabilities and keep the group afloat. Toshiba said that Westinghouse-related liabilities totaled $9.8 billion as of December, making it one of the industry's most costly collapses to date; it had earlier estimated writedowns would swell to $6.3 billion.
