Westinghouse May Seek to Tap Credit Line
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PITTSBURGH — Westinghouse Electric Corp. is hoping to tap a $1.5-billion line of credit because of little investor interest in its short-term corporate debt, a source said Monday.
Westinghouse also plans to meet Friday in New York with 80 lending institutions, including its lead bank, Chemical Bank. It plans to discuss additional borrowing of up to $8 billion to secure more permanent financing and avoid potential funding problems, said the source, who was familiar with the company’s finances.
The industrial, broadcasting and financial giant issued a statement saying only that it was meeting soon with lenders to reduce short-term debt and expand bank credit. Company spokesman Paul Jones declined further comment.
The search for additional credit comes after Westinghouse announced two weeks ago that it would cut its work force by 4,000.
Westinghouse also said it would take a $1.68-billion pretax charge in the third quarter to cover bad loans made by its financing unit, Westinghouse Financial Services Inc.
In February, Westinghouse took a $975-million pretax charge against earnings to cover bad real estate loans.
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