Toshiba, the Japanese corporate juggernaut, is currently in disarray as the company confirmed it will lose $6.3 billion in relation to its US nuclear construction business. As a result, the company's chairman resigns and analysts predict that the company will have to file for bankruptcy, according to Android Authority.

The company made efforts of avoiding the $6.3 billion loss by selling a 20 percent stake in its profitable memory business which attracted several bids from major companies, however Toshiba confirmed that it will still shoulder the billion dollar loss despite its efforts.

Toshiba has advised its chairman, Shigenori Shiga, to step down from the board but will stay with the company as an executive. The circumstance jeopardizes around 200,000 employees in Japan alone as it already confirmed that it will stop the expansion of its US nuclear business but will still continue the two reactors that are currently under construction in South Carolina and Georgia.

The Washington Post cited Tom O'Sullivan, a Tokyo-based energy analyst, "This is one of Japan's historic corporations and it's very important to the Japanese economy, so this could be very significant for Japan." He also added, "It would even impact Japan's sovereign credit rating if there's a knock-on effect."

Tokyo Stock Exchange rules states that the deadline for reporting earnings is 45 days, however Toshiba failed to meet the deadline and admitted the report was not ready and needed more time to file its earnings.

The company claims that they need further research on the internal reporting and its impact on financial results. Toshiba's shares dropped eight percent in local trading.

Toshiba has been having problems in the past years. In 2015, the company discovered to have overstated its profits that lead to wide-ranging restructuring and asset sales.

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