Toshiba to apply for return to TSE’s first section

TOKYO, April 3 (Reuters) – Toshiba Corp plans to file an application as early as Friday to return to the Tokyo Stock Exchange’s first section, sources familiar with the matter said.

The Japanese company was relegated to the second section in 2017 after massive writedowns at its U.S. nuclear power business caused liabilities to exceed assets – a condition for automatic demotion.

It would have needed at least five consecutive years of audited financial reporting to return to the first section under the Tokyo bourse’s previous rules, but that requirement was reduced to two years this year.

The sources declined to be identified because the matter is still private. (Reporting by Makiko Yamazaki; Editing by Chris Gallagher)