| WILMINGTON, Del/NEW YORK
WILMINGTON, Del/NEW YORK May 14 The owners of
the Vogtle nuclear power plant in Georgia led by Southern Co
agreed to cap Toshiba Corp's responsibility for
guarantees for its bankrupt Westinghouse subsidiary, helping
ease the Japanese electronics maker's financial stress, people
familiar with the matter said Sunday.
The agreement pegs Toshiba's guarantees for the unfinished
Vogtle plant at about $3.6 billion, payable over at least three
years, the people said, adding that the deal is not yet final.
The deal is also contingent on the owners of the incomplete
V.C. Summer power plant in South Carolina, including utility
company SCANA Corp, coming to a similar agreement with
Toshiba, said the people, who could not be identified because
the talks are not public.
Toshiba's subsidiary Westinghouse is building the nuclear
power plants for the U.S. utility companies, but filed
bankruptcy in March due to cost overruns.
Toshiba and Westinghouse declined to comment. SCANA did not
immediately return a request for comment.
"We remain in discussions with Toshiba to add structure to
their payment obligation under the $3.68 billion parent
guarantee," said Jacob Hawkins, a spokesman for Southern Co's
Georgia Power unit. "We will take all actions necessary to hold
Westinghouse and Toshiba accountable for their financial
obligations, including the parent guarantee."
(Reporting by Tom Hals in Wilmington, Delaware and Jessica
DiNapoli in New York; Editing by Nick Zieminski)