Auditor's Sign-off Helped Toshiba to keep away from Getting Delisted Temporarily

File Toshiba still needs to get itself out of a negative net worth by March 2018 to avoid being delisted

File Toshiba still needs to get itself out of a negative net worth by March 2018 to avoid being delisted

But auditors at PricewaterhouseCoopers Aarata issued a qualified opinion, saying Toshiba's statements were "mostly appropriate".

While agreeing generally with the financial results of Toshiba, the sign off from PwC did come with a caveat.

The earnings report greatly reduced the chance of an embarrassing delisting of the company from the Tokyo Stock Exchange.

Since taking over as Toshiba's auditor in June past year, PricewaterhouseCoopers Aarata (PwC) has yet to endorse the firm's financial results which have suffered numerous delays.

Following PwC's sign-off, the Tokyo Stock Exchange is now reviewing Toshiba's governance to decide whether the firm can stay listed.

But with a week left until the extended earnings deadline, the auditor still refused to approve the three-quarter figures, forcing Toshiba to delay the release of its earnings again.

Sources have said that approval from the auditor may improve how Toshiba is viewed and could have a positive impact on the TSE's review of the company.

Toshiba is in desperate need of covering its losses from its USA nuclear business. The company said it was intending to swing back to profitability in the current fiscal year, but getting itself out a negative net worth by March 2018 would not be easy, analysts warned. Analysts have said delisting is unlikely as long as PwC signed off on the results. The U.S. company filed for bankruptcy protection in March. The company seeks to sell its huge chip-making branch to the highest bidder, and has recently opened up negotiations with electronics titans Foxconn and Western Digital after previous talks with a Japanese-led consortium of buyers.

The legal dispute between Toshiba and Western Digital is scheduled to be examined by an worldwide court of arbitration between September and October with the process likely to take a year or more.

But the troubled company is still on shaky ground as it faces a court battle to sell off its prized memory chip business for around $18 billion - the sale is seen as crucial to its turnaround. "I can't imagine that anybody is going to pay real money for these assets until the legal situation has been made clear", Givens said, warning that the sale process would likely be paralyzed indefinitely as a result.