TOSHIBA has repeated that it is "not aware" of any plans for its American nuclear division to file for Chapter 11 bankruptcy.

This comes following new reports saying Westinghouse Electric - part of the Japanese giant which is due to produce the three reactors which would power the proposed Cumbrian nuclear new build at Moorside, near Sellafield - has called in specialist bankruptcy lawyers.

The Reuters news agency has reported that Westinghouse has appointed attorneys from law firm Weil Gotshal & Manges.

Westinghouse is part of Toshiba, which has a 60 per cent in NuGen, the company with plans to build a nuclear power plant at Moorside.

It has been rumoured to be considering filing for Chapter 11 bankruptcy in the USA - which gives a company in difficulty protection from its creditors for a limited period to allow it to reorganise - as a way of dealing with its financial problems.

The report also said Westinghouse had also hired a member of staff from consultancy AlixPartners.

Toshiba though has maintained that it is "not aware" the division taking this action.

A spokeswoman for Toshiba said: “Toshiba is not aware of any intention that Westinghouse commence Chapter 11 of Title 11 of the United States Bankruptcy Code at this moment."

Toshiba has forecast a 713bn yen (£5bn) loss in its nuclear business and its woes stem mainly from Westinghouse. It is estimated that filing for Chapter 11 could see this cut to 300bn yen (£2.2bn).

In January the company announced this subsidiary may have overpaid - by several billion dollars - for another nuclear construction and services business.

This led the company to the review of its involvement in non-Japanese nuclear projects - including Moorside - and put its semiconductor business up for sale. It subsequently announced that it remained committed to the Cumbrian development but the company's financial situation has fuelled fears over its involvement.

The company's lawyers are also investigating "inappropriate pressure" by Westinghouse's managers in relation to the purchase of the other nuclear business.

Weil and AlixPartners have not yet replied to requests for comment.