Toshiba Corp.'s (TOSYY)  U.S nuclear division, Westinghouse, filed for Chapter 11 bankruptcy protection in New York Wednesday.

The company is looking to undertake a strategic restructuring as a result of challenges to a project in the U.S., Westinghouse said. It has obtained $800 million in debtor-in-possession (DIP) financing from a third-party lender to help fund and protect its core businesses during its reorganization.

"Today, we have taken action to put Westinghouse on a path to resolve our AP1000 financial challenges while protecting our core businesses," said interim CEO Jose Emeterio Gutierrez. "We are focused on developing a plan of reorganization to emerge from Chapter 11 as a stronger company while continuing to be a global nuclear technology leader."

The DIP financing will fund Westinghouse's core businesses of supporting operating plants, nuclear fuel and components manufacturing and engineering as well as decommissioning, decontamination, remediation and waste management.

The company has reached an agreement with each owner of the U.S. AP1000 projects to continue these projects during an initial assessment period.

Westinghouse said existing letters of credit have been cash collateralized in full and will remain in place. The financing will also allow for new letters of credit to be issued.

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The company also filed several "first day" motion with the court to ensure business continuity of payments, including employee salaries and suppliers.

Toshiba now predicts that full year operating loss could be in the region of ¥1.01 trillion ($9.1 billion) up from the ¥390 billion predicted on Feb. 14.

Toshiba shares closed 1.15% higher in Tokyo trading to end the session at ¥219.6 each but have plunged more than 53% since news of the writedowns and costs crisis at Westinghouse were first revealed in December.

In an effort to reassure investors, Toshiba said last month that it expects to see an operating profit of ¥210 billion ($1.8 billion) in the fiscal year ending in March 2019 (corporate fiscal years typically begin on April 1) but cautioned that its full-year loss in the year ending in March would be €410 billion. Toshiba has previously said it would explore the sale of key assets, including all of its prized flash memory chip operation, which could be worth as much as $10 billion, to compensate shareholders.

Chapter 11 could clarify Toshiba's liabilities and allow for restructuring of the parent to proceed and for the possible sale of Westinghouse.

Westinghouse said existing letters of credit have been cash collateralized in full and will remain in place. The financing will also allow for new letters of credit to be issued.

The company also filed several "first day" motion with the court to ensure business continuity of payments, including employee salaries and suppliers.

Editors note: This article was originally published at 3:32 am ET and has been update with additional details