Soleron on 11 April 2012
Individual losses or expenses don't matter much to a public company, as long as it can borrow money to keep paying its workers. This is called 'cashflow' and pretty much the only way a company goes bankrupt is if it can't borrow. No matter how much of a loss it makes, even if a company is net negative over its whole lifespan it can still be successful!
So this huge loss, despite being only on paper, undermines the confidence of Sony's creditors, and they will start raising interest and giving less favourable terms.
It's all about confidence and not the amount. Confidence in Sony is actually HIGHER than a few months ago because they changed CEO and they're believing his promises that he will turn the company around.
